Coffee Day Enterprises, the Bengaluru based company which started the Coffee Day chain, has been shunned by the stock exchanges for non-compliance of corporate governance norms. The company has been under a cloud since its founder promoter VG Siddhartha passed away in 2019.

Both the BSE and the National Stock Exchange (NSE) have already suspended trading in Coffee Day since August last year. It is now learned that the NSE has issued a show-cause notice to the company and is contemplating a compulsory delisting of its shares.

The pending NSE show-cause notice was disclosed by Coffee Day in its secretarial audit report. SEBI has mandated that every listed entity and its material unlisted subsidiaries incorporated in India shall undertake secretarial audit and disclose that as an annexure with its annual report.

As per the secretarial compliance report dated January 8, a show-cause notice for compulsory delisting was received by Coffee Day from NSE on November 13, 2020. As per SEBI’s corporate governance norms, any listed company that violates them for more than three consecutive quarters will be asked to delist from the exchanges.

“(The company) continues non-compliance with respect to the requirements under Listing Regulations. The company has requested an extension of time for compliance,” the audit report said.

For the three months ending December 2020, Coffee Day generated a revenue of ₹4.14 crore and booked a loss of ₹65 crore. The company has lost over ₹100 crore in the first three quarters of FY21, data showed.

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