Why Polycab India shares tumble 21% in a day?

Shares {of electrical} items firm Polycab India on Thursday plummeted 21 per cent, eroding ₹15,485.96 crore from its market valuation, amid tax evasion considerations.

The Revenue Tax division has detected “unaccounted money gross sales” of about ₹1,000 crore after it lately raided the Polycab group, a outstanding wires, cables and electrical gadgets producer, the CBDT and official sources mentioned on Wednesday.

The corporate’s inventory plunged 21.08 per cent to settle at ₹3,877.40 on the BSE. In the course of the day, shares of the corporate fell sharply by 22.40 per cent to ₹3,812.35.

On the NSE, it nosedived 20.50 per cent to ₹3,904.70 apiece.

The corporate’s market valuation fell by ₹15,485.96 crore to ₹58,225.57 crore.

Unaccounted money of greater than ₹4 crore was seized and greater than 25 financial institution lockers had been placed on restraint after the searches had been launched towards the group on December 22 final yr, the Central Board of Direct Taxes (CBDT) mentioned in an announcement.

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The CBDT assertion didn’t title the group however official sources confirmed it to be Polycab India Restricted.

Polycab India has denied any rumours of tax evasion by the corporate circulating within the media.

“The corporate asserts its dedication to compliance and transparency, having absolutely cooperated with the Revenue Tax division officers throughout the search proceedings in December ’23. The corporate has not acquired any communication from the Revenue Tax division concerning the end result of the search,” Polycab India had mentioned in a clarification to the BSE on media stories of ₹200-crore tax evasion.

Polycab India stays targeted on its mission to supply high quality services and products to its clients, whereas upholding the rules of company governance and moral enterprise practices, it mentioned within the submitting.

The BSE on Thursday has sought clarification from Polycab India Ltd just about information that I-T dept discovered unaccounted gross sales of ₹1,000 cr throughout raid towards Polycab.