Polycab shares plunge 20% after reports of tax evasion

New Delhi : Polycab India shares plunged 20 per cent on Thursday after reports of Income Tax evasion. Polycab shares were trading at Rs 3,905, down 20.5 per cent on BSE. In an earlier statement, Polycab India, a leading electrical goods company, denied any rumours of tax evasion by the company circulating in media.

The company asserts its commitment to compliance and transparency, having fully cooperated with the Income Tax Department officials during the search proceedings in December 2023. The company has not received any communication from the Income-tax department regarding the outcome of the search, Polycab said.

Polycab India remains focused on its mission to provide quality products and services to its customers while upholding the principles of corporate governance and ethical business practices.

Polycab India Limited (PIL) is India's largest manufacturer of Wires and Cables and one of the fastest growing FMEG companies with a consolidated turnover of Rs 141 billion in FY23.

Media reports suggested that I-T dept found unaccounted sales of Rs 1,000 crore during raid against Polycab. Polycab India shares have been sliding since December 23 after the Income Tax raids.

On December 23, Polycab India said that the Income Tax Department has initiated a search at some of the premises and plants related to the company.

“Pursuant to Regulation 30 of the Listing Regulations, please be informed that the Income Tax Department has initiated a search today i.e. December 22, 2023 at some of the premises/ plants related to the company. The company is fully cooperating with the authorities, providing them with all necessary information and support,” Polycab India said in a filing on Friday.

“Once the search by the Income Tax Department concludes, the company will update the Stock Exchanges in case of any material information/ event. At Polycab India, we adhere to the highest standards of ethical conduct and legal compliance. Our commitment to transparency and belief in the due process of law remain unwavering,” it added.

(Sanjeev Sharma can be reached at Sanjeev.s@ians.in)