I-T officials search 50 offices, facilities of Polycab India; shares fall

BSE said that it has sought clarification from Polycab India on the reports of tax raids

The Income Tax Department (I-T department) has conducted searches at nearly 50 locations linked to Polycab India in Mumbai on Friday, according to Reuters. The residences and offices of senior executives linked to the company were also being raided. Polycab is the country's largest manufacturer of wires and cables.

Another report by the Free Press Journal said that I-T officials are searching Polycab offices and facilities in Mumbai, Pune, Delhi, Bangalore, Chennai, Baroda, Secunderabad and Kolkata.

The shares of Polycab India cracked nearly 4 per cent after the reports emerged. As of 11:50 am on Friday, its shares were trading 3.78 per cent in the red at Rs 5,407.9 apiece on BSE.

 

BSE said that it has sought clarification from the company on the reports of tax raids. "The reply is awaited.," it said.

Polycab India's operations span across 23 production facilities, more than 15 offices and over 25 warehouses.

The company's market capitalisation was near the Rs 85,000 crore mark on December 11, surpassing Havells India. It posted a 58.8 per cent rise in its second-quarter profit, supported by healthy sales in its wires and cables business.

Earlier, MSCI announced that it is adding the stocks of Polycab India to its Global Standard (Emerging Markets) index. Post the rebalance on November 30, India's stock count in the index rose to 131.

Tata Motors, Polycab India, Macrotech Developers, IndusInd Bank and Paytm-parent One 97 Communications were among the nine stocks to be added by MSCI. Polycab's stock is now in the large-cap category.