Polycab India encountered a substantial setback on Friday as its shares plummeted nearly 5 percent in response to reports of Income Tax Department raids conducted at 50 locations nationwide, including the company's premises.
The raids encompassed the residences and offices of the top management, prompted by suspicions of tax evasion. Polycab's shares observed a decline of 5.04 percent, trading at Rs 5,335 on the National Stock Exchange (NSE), while on the Bombay Stock Exchange (BSE), the stock hit a low of Rs 5,404 during the day's trading.
This development marks a significant setback for the company, particularly considering its stock price had surged twofold this year. Polycab India is primarily engaged in manufacturing and vending wires, cables, and other electrical goods, boasting a wide operational footprint with 23 manufacturing facilities, over 15 offices, and more than 25 warehouses spread across the country.
Despite this recent setback, the company had previously announced a consolidated net profit of 436.89 crore for the July-September quarter, indicating a robust performance in its financial results prior to these events.
(With Agency Inputs)
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