Demerger plan dents GTC

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The stock was among the largest losers last week, falling by over 25 per cent after the company approved the demerger plan.

The scrip declined by 29 per cent from Rs 499.75 on Wednesday to Rs 353.95 on Friday, while the combined turnover on BSE and NSE dropped by 76 per cent to 9.18 lakh shares.

The company's board of directors approved to demerge its tobacco and real estate businesses into two separate entities at its meeting on February 29. The demerged entities will be listed on BSE and NSE.

The company, which owns vacant land in various states, has received the necessary exemption under the Urban Land (Ceiling and Regulations) Act, 1926, for land in Maharashtra and Andhra Pradesh. The company is awaiting exemption for land in other states from their respective governments.

The company has also approved an investment of Rs 20 crore for construction of residential, office, commercial and shopping complexes in Delhi, totalling approximately 1.80 lakh sq ft.