Golden Tobacco get nod for pact with realty developers; stock up

MUMBAI: Cigarettes and tobacco products manufacturer Golden Tobacco has received shareholders' approval to enter into a pact with realtors Sheth Developers and Suraksha Realty to either jointly develop or sell 7.7 acres owned by the company at Vile Parle suburb of Mumbai.

The company itself forayed into real estate business in 2007-08, when its Hyderabad property was also offered for joint development of a commercial complex there.

Golden Tobacco had announced last year that it is offering Vile Parle property also for joint development and has tied up with a reputed builder of Mumbai to develop this. According to a company official, Golden Tobacco had signed a memorandum of understanding to this effect subject to shareholders' approval and received an advance of 100 crore.The production at the plant was stopped in April 2010 and it has been shifted to the company's Vadodra and Palghar units.

At 9:45 am, shares of Golden Tobacco were trading 2.11% up at Rs 87.30 on the Bombay Stock Exchange.