ITC shares up over 2% as co resumes cigarette production
On May 5, ITC had said it has shut down its production till the time it is able to comply with “interim requirements” of 85% pictorial warnings.business Updated: May 09, 2016 13:45 IST
Shares of ITC on Monday rose by over 2% after the company said there is “progressive resumption” of production at its cigarette factories, which was suspended from May 4 over the large pictorial warning issue.
The scrip after a positive opening further gained 2.34% to Rs 324.65 on BSE.
At NSE, it climbed 2.14% to Rs 324.50.
“The cigarette factories are commencing production progressively,” ITC said in a BSE filing on Sunday.
On May 5, ITC had said it has shut down its production till the time it is able to comply with “interim requirements” of 85% pictorial warnings.
On May 4, the Supreme Court had directed tobacco companies to implement the rule mandating larger pictorial warnings and refused the manufacturers’ plea to stay the implementation of new cigarette packaging rules introduced from April 1.
A range of brands, including India Kings, Classic, Gold Flake, Navy Cut, Capstan, Bristol, Flake, Silk Cut, are manufactured at plants in Bengaluru, Munger, Saharanpur, Kolkata and Pune.