The tobacco company's stock tanked 18.13 per cent to settle at Rs 1,453.25 on the BSE. During the day, it plunged 19.16 per cent to Rs 1,435.
At the NSE, the scrip settled at Rs 1,488, down 15.88 per cent.
The company has a manufacturing facility at Hyderabad and its principal activities are manufacture, sale of cigarettes and unmanufactured tobacco.
However, shares of ITC ended the day in green, up 0.32 per cent.
While presenting the Budget for 2014-15, Finance Minister Arun Jaitley proposed to increase the specific excise duty on cigarettes in the range of 11 per cent to 72 per cent.
Excise duty has been increased by 72 per cent on cigarettes of length not exceeding 65 mm and by 11 per cent to 21 per cent for cigarettes of other lengths.
Similar increases has also been proposed on cigars, cheroots and cigarillos.