Akums Drugs share price crashed almost 7 per cent in intraday trade on the BSE on Wednesday, 22 January, after the company said the Income Tax Department conducted a search at its offices and manufacturing units. Akums Drugs share price opened at ₹626.20 against its previous close of ₹626.20 and crashed 6.6 per cent to an intraday low of ₹585. The stock pared losses later and traded 4 per cent down at ₹600.90 around 12:45 PM.
The mid-cap stock suffered sharp losses after it informed about an IT search at its premises.
“We would like to intimate that the Income Tax Department (IT Department) conducted a search under the Income Tax Act, 1961 at the offices and manufacturing units of the company and its subsidiaries. We have fully cooperated with the officials of the IT Department during the search and responded to the clarifications and details sought by them. We will continue to provide any further clarification/information that may be required,” Akums Drugs and Pharmaceuticals said in an exchange filing during market hours on January 22.
“Akums is a law-abiding company and follows the best corporate governance practices. We have extended our full cooperation to the officials of the IT Department in this regard. The business operations of the company continue as usual, except for some minor hiccups. We will comply with legal obligations in relation to disclosure(s) from time to time,” the company added.
Akums Drugs share price trend
The stock debuted on the Indian exchanges last year on August 6. It hit an all-time high of ₹1,174.85 on August 20 followed by a record low of ₹527 on November 19 last year. At the current market price of ₹600, the stock is down nearly 12 per cent against its issue price of ₹679.
The stock has performed poorly since its listing, despite its initial public offering (IPO) receiving a strong response from investors. The ₹1,857 crore mainboard issue was subscribed over 63 times. The retail segment was subscribed 21 times, while the non-institutional buyers’ segment was subscribed 42 times. The segment reserved for qualified institutional buyers saw a subscription rate of 90 times.
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