ITC is considering a bid to buy a stake in Coffee Day Enterprises: Report

Coffee Day is under pressure to pare borrowings after its founder V G Siddhartha took his own life as debt strains began to emerge in his companies

ITC Ltd. is considering a bid to buy a stake in Coffee Day Enterprises Ltd. as the nation’s biggest cigarette maker seeks to diversify its businesses, according to people familiar with the matter.

The maker of Classic and Gold Flake cigarettes has been given access to Coffee Day’s assets and financial for due diligence, said the people, who asked not to be identified as the discussions are private. ITC could be vying with Coca-Cola Co., which has evaluated India’s biggest cafe chain but hasn’t made a formal offer, said one of the people.

Shares of ITC fell as much as