Indian cigarette makers rise on report of FDI prospects in tobacco sector

Godfrey Phillips India

27/08/2020 05:39

** Shares of VST Industries Ltd  VSTI.NS  climb 10.2% to
mid-March high, Godfrey Phillips India Ltd  GDFR.NS  surges
13.9% to highest since April 23
    ** The Parliamentary Standing Committee on Commerce and
Industry recommended permitting regulated foreign direct
investment in the tobacco sector, according to a PTI report
carried https://economictimes.indiatimes.com/industry/cons-products/tobacco/permit-regulated-fdi-in-tobacco-par-panel-on-commerce-recommends/articleshow/77763392.cms
 by the Economic Times
    ** "Committee is of the opinion that the FDI in tobacco
sector albeit in a regulated manner would stimulate the
production and processing of Indian tobacco thereby boosting its
export" - report
    ** Panel made recommendations in its report submitted to the
chairman of the upper house of parliament on Wednesday, likely
to be tabled in upcoming session of parliament - report
    ** India prohibited foreign direct investment in cigarette
manufacturing in 2010
    ** Shares of cigarettes-to-hotels conglomerate ITC Ltd
 ITC.NS  rose as much as 2% before paring gains
    ** Up to last close, ITC and VSTI fell ~18% each this year,
while GDFR dropped ~25%

 (Reporting by Chris Thomas in Bengaluru)
 ((chris.thomas@thomsonreuters.com; +91-80-6749-8695; Reuters
Messaging: chris.thomas.thomsonreuters.com@reuters.net))