Polycab India share price cracked over 22 per cent in morning trade on BSE on Thursday, January 11.
On Thursday, January 11, the morning trade on the BSE saw a 22% increase in the price of Polycab India shares due to rumors that the Income Tax (I-T) Department had searched multiple company locations in December.
The opening price of Polycab India’s shares on Thursday was ₹4,421.85, 10% less than the previous closing of ₹4,913.15. Following that, there was an additional 22.4% decrease in the stock, which brought it down to ₹3,812.35. Nearly 33 lakh shares, valued at ₹1,293 crore, were traded in several block deals on Thursday morning, according to CNBC-TV18.
The price of Polycab India’s shares has recently fluctuated due to reports circulating about the company being accused of tax evasion. The Income Tax Department discovered ₹200 crore in undisclosed income, prompting media reports on Tuesday, January 9, that Polycab has been accused of tax evasion. The stock fell by roughly 9% as a result.
On the same day, the company refuted allegations of tax evasion in a press release.
“The business reaffirms its dedication to compliance and openness, having provided the Income Tax Department with complete cooperation throughout the search process in December 2023. The income-tax department has not contacted the company regarding the search’s results, the company stated on January 9.
The Income Tax Department reportedly searched Polycab’s location recently and found irregularities in the company’s financial records. According to additional reports, the department plans to send the business a notice shortly requesting payment of the allegedly underpaid taxes as well as any related penalties.
The media reports went on to say that the Income Tax Department had found records of transactions in the promoter accounts worth ₹250–300 crore.
Meanwhile, a PIB report on Wednesday, January 10, stated that the Income Tax Department had started search and seizure operations on December 22, 2023, regarding a conglomerate involved in the production of wires, cables, and other electrical items. The report did not specifically name Polycab.
Numerous pieces of incriminating evidence, including documents and digital data, were discovered and taken into custody during the search operation. These proofs show the group’s method of tax evasion, which it used in cooperation with a few authorized distributors. Preliminary analysis suggests that the flagship company indulged in unaccounted cash sales, cash payments for unaccounted purchases, non-genuine transport and sub-contracting expenses, etc., for suppression of its taxable income,” the PIB report said.
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