News

Published: January 12, 2024
Updated: January 12, 2024

Over 20% Plummet: Polycab India Shares Tumble on Tax Evasion Probe

Polycab India, a major player in the electrical goods sector, faced a substantial blow as its shares plummeted by over 20%, wiping out ₹15,485.96 crore from its market valuation. This drastic downturn was triggered by ongoing concerns related to a tax evasion investigation.

Tax Evasion Probe Unveils Unaccounted Sales:

The Income Tax department's recent raid on the Polycab group revealed "unaccounted cash sales" amounting to approximately ₹1,000 crore. This revelation sparked a significant sell-off of Polycab India shares in the market.

Stock Performance Details:

Polycab India's stock experienced a sharp decline of 21.08%, settling at ₹3,877.40 on the BSE. Intraday, the shares saw a staggering fall of 22.40% to ₹3,812.35. The NSE witnessed a 20.50% nosedive to ₹3,904.70 per share. Consequently, the company's market valuation plummeted by ₹15,485.96 crore, reaching ₹58,225.57 crore.

Seizure of Assets and Locking of Bank Lockers:

In the aftermath of the December 22 raid last year, the Income Tax department seized unaccounted cash exceeding ₹4 crore and placed restrictions on over 25 bank lockers associated with the Polycab group.

Polycab India's Response and Denial:

Polycab India responded by denying any allegations of tax evasion, emphasising its commitment to compliance and transparency. The company stated that it had fully cooperated during the Income Tax department's search proceedings in December 2023. Additionally, Polycab India clarified that as of now, they have not received any communication from the tax authorities regarding the outcome of the search.

Market Seeking Clarifications:

In response to the unfolding events, the BSE sought clarification from Polycab India Ltd regarding the news about the Income Tax department's findings on unaccounted sales of ₹1,000 crore during the raid against Polycab.

The over 20% fall in Polycab India shares reflects the severity of the situation, raising concerns among investors. As the company navigates through the aftermath of the tax evasion probe, market participants await further developments and clarifications from Polycab India amidst the ongoing uncertainty in the stock's performance.