Shares of Ajanta Pharma Ltd. declined nearly 3% on Tuesday, August 19, after reports surfaced of Income Tax department raids at the company’s premises. Business Upturn first reported the development, triggering investor concerns and a knee-jerk reaction in the stock.
In a regulatory filing on Wednesday, August 20, the company confirmed that the Income Tax Department had conducted a search under the Income Tax Act, 1961, at some of its offices and manufacturing units on August 19. Ajanta Pharma stated that the search was still ongoing and that it was “fully co-operating with the officials and providing the clarifications and details sought by them.”
Importantly, the company clarified that its business operations remained unaffected and continued as usual despite the search. Ajanta also denied rumours circulating on social media, attributing the recent sharp price movement in its stock purely to market-driven factors.
This remains a developing story, with investors awaiting further clarity from both the company and the tax department.