Shares of electrical goods company Polycab India on Thursday plummeted 21 per cent, eroding ₹15,485.96 crore from its market valuation, amid tax evasion concerns.
The Income Tax department has detected "unaccounted cash sales" of about ₹1,000 crore after it recently raided the Polycab group, a prominent wires, cables and electrical items manufacturer, the CBDT and official sources said on Wednesday.
The company's stock plunged 21.08 per cent to settle at ₹3,877.40 on the BSE. During the day, shares of the company fell sharply by 22.40 per cent to ₹3,812.35.
At the NSE, it nosedived 20.50 per cent to ₹3,904.70 apiece.
The company's market valuation fell by ₹15,485.96 crore to ₹58,225.57 crore.
Unaccounted cash of more than ₹4 crore was seized and more than 25 bank lockers were put on restraint after the searches were launched against the group on December 22 last year, the Central Board of Direct Taxes (CBDT) said in a statement.
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The CBDT statement did not name the group but official sources confirmed it to be Polycab India Limited.
{{/usCountry}}The CBDT statement did not name the group but official sources confirmed it to be Polycab India Limited.
{{/usCountry}}Polycab India has denied any rumours of tax evasion by the company circulating in the media.
"The company asserts its commitment to compliance and transparency, having fully cooperated with the Income Tax department officials during the search proceedings in December ’23. The company has not received any communication from the Income Tax department regarding the outcome of the search," Polycab India had said in a clarification to the BSE on media reports of ₹200-crore tax evasion.
Polycab India 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, it said in the filing.
The BSE on Thursday has sought clarification from Polycab India Ltd with reference to news that I-T dept found unaccounted sales of ₹1,000 cr during raid against Polycab.