ITC gains as board to consider demerger

ITC rose 1.09% to Rs 311.60 at 09:54 IST on BSE after the company scheduled a board meeting to consider a proposal for demerger of the non-engineering business of Wimco.

The announcement was made after market hours on Friday, 23 August 2013.

Meanwhile, the S&P BSE Sensex was up 189.92 points, or 1.03%, to 18,709.36

On BSE, 43,968 shares were traded in the counter as against an average daily volume of 6.28 lakh shares in the past one quarter.

The stock hit a high of Rs 311.85 and a low of Rs 307.25 so far during the day. The stock had hit a record high of Rs 380 on 24 July 2013. The stock had hit a 52-week low of Rs 251.10 on 17 September 2012.

The stock had underperformed the market over the past one month till 23 August 2013, falling 17.94% compared with the Sensex's 8.78% fall. The scrip also underperformed the market in past one quarter, falling 7.24% as against Sensex's 5.87% fall.

India's largest cigarette maker by sales has an equity capital of Rs 791.29 crore. Face value per share is Re 1.

ITC has scheduled a board meeting on 28 August 2013, to consider a proposal for demerger of the non-engineering business comprising safety matches business and agri (forestry) business of Wimco (a subsidiary of the company) into the company. ITC alongwith Russell Credit, ITC's wholly owned subsidiary, holds 98.21% of the equity share capital of Wimco.

ITC's net profit rose 18.1% to Rs 1891.33 crore on 10.7% growth in total income to Rs 7613.88 crore in Q1 June 2013 over Q1 June 2012.

ITC has a diversified presence in cigarettes, hotels, paperboards & specialty papers, packaging, agri-business, packaged foods & confectionery, information technology, branded apparel, personal care, stationery and other FMCG products. ITC is a market leader in cigarettes.

Powered by Capital Market - Live News