Itc Classic Finance

The ITC Classic scrip took a beating last week and fell about 16 per cent to close at Rs 39.50. Considering the kind of treatment the Enforcement has meted out to the group heavyweight ITC Ltd, it is actually surprising that the scrip did not fall lower.

The Reserve Bank of India is also supposedly planning to look into all the dealings of ITC Classic to see whether the finance arm diverted any of its funds. To top all the bad publicity, there were rumours in the market on Friday that the Credit Rating Information Services of India (Crisil) could be downgrading the credit rating of the company, which triggered the final fall. All these aspects put together is what could have led market watchers to assume that there will have to be a paradigm shift in ITCs initial plans of realigning its financial services businesses with ITC Classic as the fulcrum. And what will happen then is anybodys guess.