Godfrey Philips share price fell over two percent in the morning session of September 4 as reports suggest the cigarette maker has finalised the sale of its retail business 24Seven.
At 10.20 am, Godfrey Phillips stock price was quoting Rs 6,470.15 on the NSE, lower by 2.5 percent compared to the previous session's close.
According to CNBC-TV18 reports, Godfrey Phillips signed a term-sheet with the the start-up New Shop, with the aim to close the transaction by September. The shops and assets of 24Seven are already being shifted to New Shop.
Follow our market blog to catch all the updates
In July this year, the Delhi High Court had allowed Godfrey Phillips to proceed with the sale of the retail business 24Seven. The board's decision to sell the retail business was opposed by Executive Director Samir Modi, who is also in the middle of an inheritance tussle with the MD of Godfrey Phillips, Bina Modi.
Established in 1936, Godfrey Phillips has been known primarily for cigarette brands Four Square, Red & White, and Cavanders. It also has an exclusive sourcing and supply pact with Philip Morris International to make and distribute the Marlboro brand in India.
It had diversified into retail business in 2010, in order to reduce reliance on tobacco business and to tap into the growing consumption market. At last count, 24Seven had more than 150 stores spread across Delhi NCR, Punjab, Telangana, with a gross sales of Rs 484 crore.
Godfrey Phillips shares have jumped over 200 percent during the past 12 months, more than tripling investors' wealth. In comparison, the Nifty 50 index has gained around 30 percent during the same time.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
