Shree Cement shares slump after report of $2.81 billion tax evasion

According to a report, tax evasion amounting to ₹230 billion ($2.81 billion) was found in searches at multiple company locations.

India's Shree Cement fell on Monday, after NDTV reported on Saturday that tax evasion amounting to 230 billion rupees ($2.81 billion) was found in searches at multiple company locations.

The company said on Saturday that the survey was still ongoing, and that its management team is extending full co-operation to officials. (Hindustan Times file/ Representative image)

The income tax (IT) department was conducting a survey action at five locations of the company in the north-western state of Rajasthan last week, according to reports.

Shares of the company opened 10% lower at 22,630.75 rupees, their steepest intraday drop in over three years, and were last down around 8.1% at 9:56 am IST.

If trends hold, shares are on track to fall for the sixth straight session.

The company said on Saturday that the survey was still ongoing, and that its management team is extending full co-operation to officials.

Shree Cement and the IT department did not immediately respond to Reuters' request for comments.