Updated March 14th, 2024 at 11:01 IST

Balkrishna Industries shares fall on reports of Income Tax raids

The tyre manufacturer has asserted that it is cooperating with the authorities involved, ensuring the provision of all necessary information and support.

Reported by: Anirudh Trivedi
Representative | Image:PTI
Advertisement

I-T raids at Balkrishna Industries: The Income Tax Department has started a search operation at the office premises and manufacturing units of Balkrishna Industries, a multinational tyre manufacturing company based in Mumbai. The I-T raid that started at 6:00 am on March 11, 2024, is currently ongoing.

The Mumbai headquartered company, while confirming the search in its public statement released at BSE, has asserted that it is cooperating with the authorities involved, ensuring the provision of all necessary information and support. 

Advertisement

Furthermore, the company has also pledged to update the stock exchanges with any material information or events once the search concludes.

The initiation of a search operation by the Income Tax Department often marks a major development warranting careful observation from investors and stakeholders alike. Such actions may stem from various factors, including regulatory concerns, compliance issues, or potential instances of financial irregularities, analysts said.

Advertisement

Market sentiment and investor confidence

The revelation of an ongoing search by tax authorities has also impacted the market sentiment and investor confidence in the company. The shares of Balkrishna Industries fell as much as 3.29 per cent to hit an intraday low of Rs 2286.50 apiece. The uncertainties surrounding the outcome of the investigation may lead to further fluctuations in the company's stock price and overall market perception, analysts added.

Advertisement

Additionally, stakeholders should remain vigilant for any subsequent disclosures or updates from the company regarding the progress of the search and its aftermath.

As of 10:50 am, Balkrishna Industries shares traded 0.57 per cent lower at Rs 2,272, underperforming the Sensex which was 0.3 per cent.

Advertisement

Published March 14th, 2024 at 10:55 IST