Pawan Munjal | Business Upturn

ED raids Hero MotoCorp chairman’s residence triggering worst market fall in over a year

Viditha Ganji — Tue, 01 Aug 2023 08:13:32 +0000

Shares of Hero MotoCorp, the leading domestic automobile major, experienced a sharp decline of over 4 percent on August 1, following the news of the Enforcement Directorate (ED) conducting raids at the residence of Pawan Munjal, the Chairman of the company. The ED’s action came in response to a case flagged by the Directorate of Revenue Intelligence (DRI), which recently apprehended a close aide of Pawan Munjal in possession of undeclared foreign currency.

As a result of the ED raid, Hero MotoCorp’s shares plummeted to a year’s low, trading at Rs 3,064, sparking concerns among investors and market watchers. The investigation has raised questions about the company’s financial practices and governance.

This is not the first time that Hero MotoCorp has come under government scrutiny. On June 15, it has been reported that the Ministry of Corporate Affairs (MCA) had initiated a separate probe into the company. The MCA launched its investigation after the Income Tax department conducted an earlier probe into specific transactions of the automobile giant.

The MCA’s probe aims to assess Hero MotoCorp’s relationship with a third-party vendor in a case related to alleged diversion of funds. Additionally, the investigation will scrutinize the company’s ownership structure.

The market’s reaction to the ED raid reflects investors’ concerns over the potential impact of the ongoing investigations on Hero MotoCorp’s financial standing and reputation. As one of India’s leading automobile manufacturers, Hero MotoCorp’s performance has a significant influence on the country’s automotive sector.

Market experts and analysts are closely monitoring the situation as further details of the ED’s investigation and the MCA’s probe unfold. Investors are particularly concerned about any potential adverse impact on the company’s financials and stock performance in the coming days.

Hero MotoCorp is yet to release an official statement regarding the ED raid and the MCA’s probe. As the investigations progress, the company’s response and actions will play a crucial role in shaping the perception of stakeholders and investors.

It remains to be seen how Hero MotoCorp navigates through these challenging times and addresses the allegations against it. The automotive giant’s reputation and standing in the market are at stake, and investors are keenly awaiting updates on the outcome of the ongoing probes.

IT dept raids Hero MotoCorp’s Chairman Pawan Munjal’s residence & office

Mymun Malik — Wed, 23 Mar 2022 05:35:12 +0000

The Chairman of hero MotoCorp, Pawan Munjal is next up under the scanner of the IT raid. Currently, Income Tax Department officials are probing at his Gurgaon residence and office, as reported by ANI.

Hero MotoCorp enlisted in stock markets and is a massive 2-wheeler player. Hero MotoCorp interestingly is the world’s biggest 2-wheeler manufacturing and assembling company, and has a business presence in more than 40 countries.

It is available in countries like Africa, America, Asia. When looking at the balance sheet one can clearly make out how much Hero MotoCorp has achieved in the 2-wheeler segment in India alone. Hero MotoCorp enjoys 50% of the marketplace in the 2-wheeler segment in India

Yesterday it was the Hiranandani Group and today it’s Hero MotoCorp under the scanner of the Income Tax department.

Not only Pawan Munjals’ home but also several top executives of Hero MotoCorp came under the Income Tax scanner over alleged tax evasion.

Offices were barged in at the Gurugram location in Haryana, some more locations in Delhi stated the Income Tax department officials.

They explicitly scrutinized the financial papers and many business transactions of Hero MotoCOrp’s top executives.

The Income Tax officials stated, “The probe is on at Pawan Munjal’s residence and several other top executives of hero MotoCorp, residences and offices are being scanned thoroughly. It’s a sight seizure action search if found suspicious of tax evasion.”

As soon as the IT raid at hero MotoCorp’s top executives hit the market, the company’s stock fell by 1.5 %.

Hero MotoCop CEO teases upcoming electric scooter

Vandana Nampoothiri — Tue, 10 Aug 2021 07:32:39 +0000

Pawan Munjal, CEO of Hero MotoCorp on Monday, revealed the first look of the company’s upcoming electric scooter, during the live stream of Hero MotoCop’s tenth-anniversary celebration.

Munjal was seen standing next to the new scooter in the images leaked online. Autocar India noted that the company did not share any details of the product.

As reported by Autocar India, the scooter appears to be equipped with a 12-inch wheel at the front and a 10-inch unit at the rear. The white and black scooter featured in the image appears to be sleek with a curved body design and long seat, reported Hindustan Times Auto.

During the event, Munjal said that the electric scooter will be unveiled soon. According to Hindustan Times Auto, Hero MotoCorp signed an agreement with Taiwanese company Gogoro in April 2021 to share battery swap and technology features. The design of the new scooter however does not reflect what Gogoro offers.

Hero’s new electric scooter is expected to compete with other scooters like Ola Electric, Bajaj Chetak electric, Ather 450X and TVS iQube. It is expected to go on sales later this year or early next year.