Shares of education solutions provider Educomp Solutions today fell to a one-year low at the bourses after the company said Income Tax department was conducting probe at its offices in Gurgaon and Delhi.
Following the buzz, the stock went into a tailspin, reversing its morning gains and plunged 14% to hit a 52-week low of Rs 221 on the BSE. However, later the stock managed to wipe out some of the losses and was trading at Rs 232.50, down 9.62% at 1304 hours.
Investors went for panic selling on the NSE as well, where Educomp's stock plummeted by 14.27% to touch a one-year low of Rs 220.65.
"Income tax department is conducting a search at the office of Educomp Solutions Ltd. The company is given to understand that this is a routine verification of records. We have full faith in the departmental procedural diligence and are cooperating fully with the authorities", the company statement said.
The IT is searching the company's Gurgaon and Delhi offices, according to sources.
Meanwhile, the BSE 30-share benchmark index Sensex was trading lower by 252.63 points at 16,588.17 during the afternoon trade.
