FMCG major ITC shares plunged as much as 3.64 per cent in the early trade on Friday after the company on Thursday said its cigarette factories have been shut since May 4
FMCG major ITC shares plunged as much as 3.64 per cent in the early trade on Friday after the company on Thursday said its cigarette factories have been shut since May 4 and will remain so till the time it is able to comply with ‘interim requirements’ of 85 per cent pictorial warnings.
At 9.42 am, shares of ITC were trading 1.94 per cent down at Rs 311.40. Later, the stocks ended 0.11 per cent down at Rs 317.20.
On Wednesday, the Supreme Court had directed tobacco companies to implement the rule mandating larger pictorial warnings and refused the manufacturers’ plea to stay the implementation of new cigarette packaging rules introduced from April 1.
The apex court said that the tobacco companies have to follow the rules till the Karnataka High Court, where all the petitions from various high courts are being transferred, pronounced its final order.
In a BSE filing, ITC said, “In the meantime, the company has had to shut its cigarette factories from May 4, 2016 until the company is in a position to comply with the interim requirements pending hearing in the Karnataka High Court.”
ITC manufactures a range of cigarette brands, including India Kings, Classic, Gold Flake, Navy Cut, Capstan, Bristol, Flake, Silk Cut, which are manufactured at plants in Bengaluru, Munger, Saharanpur, Kolkata and Pune.
(With inputs from PTI)