Dishman Carbogen plunges 20%, tanks 38% in three days on I-T dept's search

Shares of Dishman Carbogen Amcis were locked in 20 per cent lower circuit at Rs 72 on Tuesday, falling 38 per cent in the past three trading days on the BSE after the Income Tax Department conducted day-long 'search and survey operation' at the properties of the pharma major on December 19.

The stock is trading at its all-time low level since listing on September 21, 2017. The counter has seen huge trading volumes with a combined 4.3 million equity shares, representing 2.6 per cent of the company's total equity, changing hands on the NSE and BSE till 10:49 am. There were a combined pending sell orders of 1.5 million shares on both the exchanges, data shows.

In a regulatory filing on December 19, the Ahmedabad-based company said that “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 and search enquiry is continuing. As a law abiding corporate, the company is extending all co-operations in this regard.”

According to a PTI report, a total of 19 properties -- 12 residential and seven offices -- of the group, commonly known as Dishman Group, were searched in and around the city. The pharmaceutical major and its subsidiaries in other countries were suspected to be involved in 'routing money through accommodation entries', the report said, quoting a senior I-T department official.

The company however, 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".

During the financial year 2016-17, Dishman Pharmaceuticals and Chemicals Limited (DPCL) and Dishman Care Limited (DCL) were merged with DPCL’s subsidiary Carbogen Amcis (India) Limited. Subsequently, the name of Carbogen Amcis (India) changed to Dishman Carbogen Amcis.