Godfrey Phillips falls for second straight day; plunges 14% in 2 days

Shares of Godfrey Phillips India (GPI) were under pressure for the second straight day, down 10 per cent to Rs 1,240, on the BSE on Wednesday despite the company clarifying that the promoter has no plan to sell its stake in the cigarette maker. In the past two trading days, the stock has plunged 14 per cent from level of Rs 1,439 touched on January 27.

The stock of GPI has outperformed the market by surging 100 per cent in the past six months, as compared to a 9 per cent rise in the S&P BSE Sensex till Monday.

GPI, in a clarification on Tuesday, said that its promoter KK Modi-owned Modi Enterprises has no plan to sell its stake in the cigarette maker. The company also clarified that it is neither engaged nor privy to any such discussions on rumored potential transaction by its promoters.

The company further said it has also received a clarification from its significant promoter that there has been no decision to put its assets on sale. The company has received multiple queries on rumored sale of shares of the Company by the promoters of the Company, it added.

The clarification came after Lalit Modi, son of late industrialist KK Modi, said on Twitter that all assets of the group were up for sale. "Just to set the record straight Yes, all assets of the KK Modi group are going on sale. I mean all. The other three trustees wanted to continue running the business but I felt post my father passing away - the value will deplete. I voted for sale," Modi tweeted late on 27 January.

And yes the #gpi board and PMI have both got a copy of the same. I can confirm the same whether the company does or not. pic.twitter.com/IGIUGrFh1C

— Lalit Kumar Modi (@LalitKModi) January 28, 2020

Meanwhile, the UK-based Jupiter Asset Management Ltd, which holds 9.37 per cent in GPI, has raised red flags over company's governance standard and sought remedial actions to boost investor sentiment, The Economic Times reported.