Shares of other listed cable companies - R R Kabel, KEI Industries and V-Marc India - also fell 4-5% on Thursday. Polycab, meanwhile, said that it has not received any communication from the tax department.
In the last nine sessions, mutual funds lost around Rs 1,460 crore and foreign investors around Rs 2,936 crore following the steep fall in the stock price
Polycab shares rose 3% on Friday as bottom-fishers took action after a 21% drop on Thursday due to income tax raids uncovering unaccounted cash sales of around Rs 1,000 crore. The company clarified that the income tax department has not named Polycab and there has been no written communication regarding the outcome of the raids. HNIs and institutional investors have sold Polycab shares. Axis Capital reduced the target price due to uncertainties after the raid and expects a multiple derating until the charges are proven otherwise.
Polycab I-t Raids: "The Company understands that there is a press release titled ‘Income Tax Department conducts search operations in Mumbai’ published on January 10, 2024 by Press Information Bureau, Delhi, which does not specifically name any company. The Company reiterates that as on date, the Company has not received any written communication from the IT Department regarding the outcome of the search," Polycab said.