Godfrey Phillips continues to fall unabated, slumps 6%

Cigarette maker Godfrey Phillips continued its freefall, crashing further 6 per cent on Thursday after reports that its promoters are planning to sell stake in the company.

Godfrey Phillips on Tuesday denied reports that its promoter KK Modi group was planning to sell its stake in the company, evoking a strong rebuttal from Lalit Modi, who called the company "blatant liars".

In a regulatory filing, Godfrey Phillips clarified that it is neither engaged nor privy to any discussions on "rumoured 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," it said.

Reacting to the company's denial, Modi, who is abroad, tweeted, "All I can say is they are blatant liars."

Sharing a letter he had written to co-trustees of KK Modi Family trust ahead of a meeting of the board of trustees on November 30, 2019, in which he proposed selling of various assets including family-controlled businesses, Modi termed clarification by Godfrey Phillips as "a complete eye wash".

Bina Modi, wife of KK Modi, took over as the chairperson of Modi Enterprises in November last year after his demise.

The shares of the company closed 5.24 per cent lower at Rs 1182 on BSE.