ITC Recovers After Monday's 7% Slump

Published: Tuesday, December 8, 2015, 10:41 [IST]

Shares in ITC recovered 1 per cent in a falling market, after a sharp slump of 7 per cent seen on Monday.

The company has announced that Greenacre Holdings Limited (GHL) has acquired 87.06% of the equity share capital of Classic Infrastructure & Development Limited [CIDL an associate of Russell Credit Limited (RCL)], which is an unit of ITC, at an aggregate consideration of Rs.11.38 crores.

CIDL having become a wholly owned subsidiary of GHL and also of RCL, has also become a wholly owned subsidiary of ITC with effect from December 07, 2015.

CIDL is engaged in the business of property maintenance & management and its Networth as on March 31, 2015 and Profit after Tax for the year ended on that date are Rs. 8.44 crores and Rs. 20.16 lakhs, respectively.

Shares in ITC were last trading at Rs 316, on the National Stock Exchange (NSE). ITC had fallen dramatically on Monday, after a panel on GST recommended a Tax of 40 per cent on Sin products in the GST bill.

This saw heavy selling pressure in the ITC stock. The share has come under intense selling pressure this year, as a plethora of taxes, continue to affect performance. This makes it difficult for the company to compete with the unorganised sector, where taxes are low.

Some of the company's divisions also have not been seeing good growth, thus being a drag on the overall performance of the company.

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Story first published: Tuesday, December 8, 2015, 10:41 [IST]