The GTC share rose to a high of Rs 20.65 on Monday, up 9.96 per cent, on rumours that ITC was looking to acquire the cigarette business of the company, according to market sources. The share closed at the same level. More than 1.26 lakh shares were traded on the BSE.
The stock has also been boosted by reports that the Maharashtra government, from July 1 this year, will impose a jail sentence of six months to three years on people who possess and consume gutkha and paan masala. These people are expected to move to cigarette consumption.
For the financial year ended March 31, 2003, the company has registered a 144 per cent rise in net profit to Rs 4.22 crore compared with Rs 1.73 crore on a 2.08 per cent increase in net sales to Rs 185.18 crore (Rs 181.40 crore).
