Polycab India Shares Plunge 22% Amidst Income Tax Department’s Investigation

Polycab India Shares Plunge 22% Amidst Income Tax Department's Investigation

VoM News Desk | January 11, 2024 | 11:46 AM IST | Breaking News | Follow on Google News

Polycab India Shares Plunge 22% Amidst Income Tax Department’s Investigation/Agencies

Polycab India Shares Plunge 22% Amidst Income Tax Department’s Investigation

Polycab India faced a significant setback on Thursday, January 11, as its share price plummeted over 22% during morning trade on BSE. Reports emerged that the Income Tax (I-T) Department had conducted search operations at multiple company premises in December, sparking concerns among investors.

The share price opened 10% lower at ₹4,421.85 compared to the previous close of ₹4,913.15, and it further declined by 22.4%, hitting ₹3,812.35. Notably, nearly 33 lakh shares, valued at ₹1,293 crore, changed hands in multiple block deals on Thursday morning, according to CNBC-TV18.

Recent reports had suggested tax evasion allegations against Polycab India, leading to heightened volatility in its share price. On January 9, media reports indicated that the Income Tax Department identified ₹200 crore in undisclosed income, resulting in a 9% drop in the stock.

Furthermore, media reports disclosed transactions worth ₹250-300 crore recorded in the promoter accounts. A PIB report on January 10, without explicitly naming Polycab, confirmed the Income Tax Department’s search and seizure operations on December 22, 2023, related to a conglomerate involved in the production of wires, cables, and electrical items.

The report highlighted incriminating evidence found during the operation, revealing the alleged modus operandi of tax evasion, including unaccounted cash sales, cash payments for unaccounted purchases, non-genuine transport expenses, and sub-contracting expenses aimed at suppressing taxable income. Investors are closely monitoring developments as the company navigates this challenging situation.

VoM News Desk

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