Shares of tobacco manufacturing company Godfrey Phillips India have fallen sharply today. Godfrey Phillips stock saw a decline of more than 6 percent in Monday’s trading. This reaction of the shares has come after the recent meeting of the board.
So many votes came in favor of Bina Modi
In the company’s board meeting held last week, Bina Modi was re-elected as the managing director for 5 years. Bina Modi was facing opposition from both her sons Lalit Modi and Sameer Modi in a family dispute. However, in the AGM, 3.79 crore or 86.6 percent votes were cast in favour of making Bina Modi the MD.
Sameer Modi was removed from the board
58.55 lakh or 13.35 percent votes were cast against the proposal to re-appoint Bina Modi as MD. Her daughter Charu Modi was also approved to be appointed as the executive director for 5 years. On the other hand, Sameer Modi was removed from the board. Now Sameer Modi is no longer a director on the company’s board.
The share price fell so much
After the AGM today, the stock fell more than 5 percent as soon as it opened on Monday. In a short while of trading, the stock fell more than 6 percent to a low of Rs 6,766.30. At 1 pm, the stock was trading at Rs 6,844.95 with a loss of 5.01 percent. The company’s market cap is currently Rs 35,460 crore.
Earlier on Friday, after the announcement of the bonus issue, the company’s share price had risen by 11 percent. The company’s board has approved the proposal to give bonus shares to shareholders in the ratio of 2:1.
Modi family owns 47 percent shares
The Modi family owns 47 percent stake in Godfrey Phillips. There was a dispute between mother and son over control of the company’s board. Before the AGM, Lalit Modi shared updates on social media and appealed to shareholders to oppose the proposal to re-appoint his mother Bina Modi as MD.
Also read: Lalit Modi also took the lead against his mother, appealed to shareholders to vote against him
