ITC dropped 1.02% to Rs 314.30 at 10:10 IST on BSE after shutting its cigarette factories from 4 May 2016 until it is in a position to comply with the interim requirements pending hearing in the Karnataka High Court on rules on pictorial warnings.
The announcement was made after market hours yesterday, 5 May 2016.Meanwhile, the BSE Sensex was down 158.42 points, or 0.64%, to 25,100.37.
On BSE, so far 2.08 lakh shares were traded in the counter, compared with an average volume of 6.68 lakh shares in the past one quarter. The stock hit a high of Rs 315 and a low of Rs 306 so far during the day. The stock hit a 52-week high of Rs 359.75 on 26 October 2015. The stock hit a 52-week low of Rs 268 on 29 February 2016. The stock had underperformed the market over the past one month till 5 May 2016, falling 2.74% compared with the Sensex's 1.52% gains. The scrip had also underperformed the market in past one quarter, dropping 1.96% as against Sensex's 2.62% gains.
The large-cap cigarette major has an equity capital of Rs 804.72 crore. Face value per share is Re 1.
ITC announced that the company had to shut its cigarette factories from 4 May 2016 until it is in a position to comply with the interim requirements pending hearing in the Karnataka High Court after Supreme Court on 4 May 2016 passed an order transferring to the Karnataka High Court all writ petitions pending in various courts challenging the rules prescribing 85% pictorial warnings on packages of tobacco products. The Supreme Court observed that all parties should endeavour to follow the rules.
The company had in April resumed production after two weeks suspension due to government's strict packaging norms requiring heavy health warning. The government had ordered that from 1 April 2016, 85% of a cigarette pack's surface had to be covered in health warnings, but cigarette firms halted production saying the policy was not clear.
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ITC is a diversified company, with presence in cigarettes, hotels, paperboards & specialty papers, packaging, agri-business, packaged foods & confectionery, information technology, branded apparel, personal care, stationery and other FMCG products. ITC is a market leader in cigarettes.
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