Polycab India’s stock rebounded with a three percent increase on the morning of January 12, a day after experiencing a significant 21% decline in its most substantial single-day fall. This plunge occurred following the company’s statement that it had not received any written communication from the income-tax department regarding the outcome of the search conducted.
On January 11, the stock faced a sharp decline after the income-tax department, which searched over 50 company premises, reported the discovery of “unaccounted cash sales” totaling approximately Rs 1,000 crore.
In response, the company assured cooperation with the income-tax department’s post-search proceedings, stating, “While the post-search proceedings will take its own course, the company will continue to fully cooperate with the I-T department in this regard. There is no material adverse impact on the financial position of the company,” as mentioned in an exchange filing.
Since the initial report on January 9 regarding tax evasion, the stock has witnessed a substantial 27% decline as investors distanced themselves from the shares of India’s largest cable and wire manufacturer.
