Neo Corp slips over 9% in two sessions

Neo Corp International hit a lower circuit limit of 5% at Rs 31.80 at 13:42 IST on BSE, extending yesterday's fall triggered by media reports that the Indian authorities are conducting a probe against the company on tax evasion charges.

Meanwhile, the BSE Sensex was down 275.73 points, or 1.07%, to 25,443.85.

On BSE, so far 6,322 shares were traded in the counter, compared with an average volume of 1.53 lakh shares in the past one quarter.

The stock opened with an downward gap of 5% at Rs 31.80 and remained stuck at that level so far. The stock hit a 52-week high of Rs 58.40 on 19 August 2015. The stock hit a 52-week low of Rs 20.60 on 21 October 2014.

The stock had underperformed the market over the past one month till 9 September 2015, sliding 19.11% compared with 8.91% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 33.53% as against Sensex's 2.88% decline.

The small-cap company has an equity capital of Rs 38.02 crore. Face value per share is Rs 10.

In a fresh disclosure on suspected black money cases being probed by tax authorities in India, the Swiss Federal Tax Administration (FTA) reportedly said it has received request for information about Indore-based textiles firm Neo Corp International.

Neo Corp, which began as a small woven sack maker in 1985 and now claims to be a multinational technical textiles group, had incidentally faced income tax searches on its various premises earlier in February 2015 for alleged tax evasion, reports suggested.

The FTA has reportedly served a notice on Neo Corp, asking it to file an appeal within 30 days before the Federal Administrative Court if they do not want their details to be shared with the Indian authorities under their mutual assistance treaty on tax matters.

As part of its bilateral treaty for administrative assistance and exchange of information with Switzerland, India has reportedly sought details about numerous individuals and companies from the Swiss government as part of its crackdown against suspected black money stashed in Swiss banks.

Reports suggested that Neo Corp is the latest in a series of Indian names that have been published in the official gazette of the Swiss government about whom the tax authorities in India have sought information from their counterparts of Switzerland.

On a consolidated basis, net profit of Neo Corp International rose 36.05% to Rs 14.38 crore on 34.89% rise in net sales to Rs 352.54 crore in Q1 June 2015 over Q1 June 2014.

Neo Corp International (NCIL) is a large integrated globally acclaimed technical textiles manufactures.

Powered by Capital Market - Live News