Shares of Polycab India tanked 15 per cent to Rs 4,175 on the National Stock Exchange (NSE) on Thursday in the intraday trade after the Income Tax (I-T) department detected “unaccounted cash sales” of about Rs 1,000 crore from its recent raids on the company.
The stock of the wires, cables, and electrical items manufacturer was temporarily locked at the lower circuit. As it trades in the futures & option (F&O) segment, the stock has no circuit limits.
A combined around 256,000 equity shares had changed hands on the counter till 9:33 AM, and there were pending sell orders for a combined nearly 2 million shares on the NSE and BSE, data shows. With today’s fall, the stock price of Polycab India has slipped 27 per cent from its record high level of Rs 5,733 touched on December 12, 2023.
It had, until today, zoomed nearly 11 times against its issue price of Rs 538 per share. The company debuted on April 16, 2019. Polycab manufactures and sells cables & wires (C&W), and fast moving electric goods (FMEG) products. It also executes limited engineering, procurement, and construction projects.
That said, Polycab India, on its part, denied any rumours of tax evasion by the company.
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Polycab India further said it remains focused on its mission to provide quality products and services to its customers while upholding the principles of corporate governance and ethical business practices.
“Preliminary analysis suggests that the flagship company indulged in unaccounted cash sales, cash payments for unaccounted purchases, non-genuine transport and sub-contracting expenses, etc for suppression of its taxable income,” cbdt alleged.
First Published: Jan 11 2024 | 9:58 AM IST