Shares of Supreme Industries slipped more than 2% on Friday, November 21, after the company confirmed that GST authorities conducted search and inspection proceedings at three of its locations. The stock dropped to around ₹3,491 in early trade, compared to the previous close of ₹3,568.70.
In a regulatory filing, the company said that GST officials visited its registered office at Nariman Point, corporate office in Andheri East, and its Khopoli manufacturing unit in Khalapur. The inquiry currently involves examination of accounts, tax payments and insurance-related details.
Supreme Industries clarified that its teams have been fully cooperating with the authorities and have provided all requested documents, adding that they will continue to support the investigation as required. The company also stressed that the search operation has not impacted its regular business operations.
Importantly, Supreme Industries said that based on its initial assessment, it does not expect any material impact on its business outlook or financial position. The action has been taken under Section 67 of the Maharashtra Goods and Services Tax Act, 2017.
The development triggered a negative sentiment among investors, leading to the early-morning decline in the share price.
