Polycab India's Stock Takes a Hit, Falls Over 22% Due to Income Tax Raid Reports.
The share price of Polycab India saw a significant decline of over 22% during morning trading on the BSE on Thursday, January 11th.
Polycab India faced a sharp drop in its share price, plummeting over 22% during the morning trading session on the BSE on Thursday, January 11. The decline was triggered by reports of the Income Tax Department conducting search operations at several company premises in December.
The day started with Polycab India's share price opening 10% lower at ₹4,421.85 compared to the previous close of ₹4,913.15. Subsequently, the stock experienced a further dip of 22.4%, reaching ₹3,812.35. According to CNBC-TV18, multiple block deals involving nearly 33 lakh shares, valued at ₹1,293 crore, took place on Thursday morning.
Recent volatility in Polycab India's share price is attributed to ongoing reports of alleged tax evasion. On Tuesday, January 9, media sources indicated that the Income Tax Department had identified ₹200 crore in undisclosed income, leading to a 9% fall in the stock.
On the same day, the company issued a press release refuting the reports of tax evasion. In the release, the company explicitly denied any wrongdoing and reiterated its commitment to compliance with tax regulations.
On January 9, the company affirmed its dedication to compliance and transparency, emphasizing full cooperation with Income Tax Department officials during the December 2023 search proceedings. The company stated that it has not yet received any communication from the income-tax department regarding the outcome of the search.
According to media reports, the Income Tax Department recently conducted searches at Polycab's premises, discovering financial record discrepancies. The reports suggested that the department plans to issue a notice to the company, seeking payment for the alleged evaded taxes and associated penalties.
Media reports also indicated that the Income Tax Department identified transactions totaling ₹250-300 crore in the promoter accounts.
On January 10, a PIB report, without explicitly naming Polycab, disclosed that the Income Tax Department initiated search and seizure operations on December 22, 2023, involving a conglomerate engaged in wire, cable, and electrical item production.
The PIB report outlined findings from the search operation, revealing incriminating evidence in the form of documents and digital data. These findings suggested a pattern of tax evasion involving unaccounted cash sales, cash payments for unrecorded purchases, non-genuine transport and sub-contracting expenses, indicating the flagship company's involvement.
Comments