Dishman Carbogen tanks 11%, hits 52-week low after I-T dept's search ops

The Income Tax Department conducted day-long 'search and survey operation' at the properties of the pharma major

Shares of Dishman Carbogen Amcis slumped 11 per cent to hit a 52-week low of Rs 104 on the BSE on Friday after the Income Tax Department conducted day-long 'search and survey operation' at the properties of a pharma major. The stock has thus fallen below its previous low of Rs 110, touched on October 25, 2019.

“The officials of Income-Tax Department have visited the company’s Head Offices and Manufacturing sites in connection with search under Section 142 of the Income-Tax Act on 19th December, 2019 and search enquiry is continuing. As a law abiding corporate, the company is extending all co-operations in this regard,” the Ahmedabad-based Dishman Carbogen Amcis said in a regulatory filing.

The company said "this has no impact on our routine operations. After conclusion, the company will be able to update the Stock Exchanges in case of any material information event".

According to a PTI report, the pharmaceutical major and its subsidiaries in other countries were suspected to be involved in "routing money through accommodation entries".

The Dishman group mainly manufactures bulk drugs, APIs and is also involved in 'contract research' and manufacturing. It owns 16 companies in foreign countries including Switzerland, China, UK and US.

At 10:19 am, the stock was trading 10 per cent lower at Rs 105 on the BSE. In comparison, the S&P BSE Sensex was up 0.16 per cent at 41,742 points. The trading volumes on the counter more than doubled with a combined 454,517 equity shares changing hands on the NSE and BSE so far.