Godfrey Phillips is on a roller coaster ride today morning. From its previous close of Rs.1438.75, it opened much higher at Rs.1459.90, rising to an intraday high at Rs.1469.80.
This sudden surge was on the back of news report that the promoter, KK Modi has put the maker of Marlboro on the sale block. Apparently, his son, Lalit Modi put out a Tweet saying, “Yes all Assets of the #kkmodi group are going on sale. I mean all. The other 3 trustees wanted to continue running the Business But I felt post my father passing away - the value will deplete. I voted for sale.”
But the company soon issued a voluntary disclosure to the stock exchanges, refuting this news. The statement issued said, “The Company has received multiple queries on rumored sale of shares of the Company by the promoters of the Company. The Company also takes note of the recent media coverage alleging that the Company 'has been put on the block by its key promoter entities.”
It added, “the Company would like to clarify that it is neither engaged nor privy to any such discussions on rumored potential transaction by its promoters. The Company has also received a clarification from its significant promoter that there has been no decision to put its assets on sale.”
Following this clarification, the stock price slumped down to an intraday low at Rs.1391.60 and currently remains in the red.