News

Published: December 23, 2023
Updated: December 23, 2023

Polycab shares dip upto 5% as Income Tax Raids Hit 50 Locations Nationwide

Shares of Polycab India experienced a sharp 5% decline to Rs 5,365 on the BSE, accompanied by substantial trading volumes, following reports of Income Tax (I-T) raids at more than 50 locations across the country. The investigation wing of the Income Tax Department targeted the company's offices and the residences of top management, intensifying the market's concerns.

The Investigation Unfolds:

The Income Tax Department's probe unfolded in Mumbai, encompassing nearly 50 locations associated with Polycab India. The scrutiny extended to the residences and offices of key figures linked to the company, intensifying the impact on its market performance.

Market Response:

By 12:51 PM, Polycab witnessed a 4% dip, trading at Rs 5,379, in contrast to the marginal 0.42% decline in the S&P BSE Sensex. Trading volumes surged significantly, with almost 1.3 million equity shares changing hands on the NSE and BSE. The BSE has sought clarification from Polycab India regarding the situation, awaiting an official response.

Stock Performance and Historical Context:

Previously hitting a record high of Rs 5,722.90 on December 14, Polycab's stock had witnessed an impressive surge, more than doubling in market value in the calendar year 2023. This remarkable growth marked a 109% increase, soaring nearly 11 times higher than its issue price of Rs 538 per share during its debut on April 16, 2019.

Business Overview:

Polycab, known for manufacturing and selling cables & wires (C&W) and fast-moving electric goods (FMEG) products, also engages in limited engineering, procurement, and construction projects. With 25 manufacturing facilities strategically located across Gujarat, Maharashtra, Uttarakhand, Tamil Nadu, and Daman, the company plays a significant role in the electrical goods sector.

The recent events surrounding Income Tax raids have cast a shadow over Polycab India's otherwise impressive market performance. Investors and market watchers eagerly await the company's response to the BSE's clarification request, as the unfolding situation adds a layer of uncertainty to the future trajectory of Polycab's stock in the market.