Godfrey Phillips, Goodricke Group rally up to 10% on tea business deal

NEW DELHI: Shares of Godfrey Phillips climbed 3 per cent, while those of Goodricke Group by 10 per cent in Tuesday's trade after the former informed stock exchanges that it has entered into an agreement with latter for trademarks, rights titles, interests and goodwill associated with its packaged tea business.

The deal value is Rs 20 crore and the agreement will be effective from November 1.

Following the announcement, shares of Godfrey Phillips rose 2.8 per cent to hit a high of Rs 1042 on BSE. Goodricke Group shares rose 10.45 per cent to hit a high of Rs 284.15.

The sale is in line with the Godfrey's decision to exit from the packaged tea business which contributed less than 3 per cent of its gross sales turnover.

Goodricke Group is engaged in the cultivation and production of tea.