Mankind Pharma's Shares Tank 5.5% After IT Raid In Delhi Office Over Tax Evasion Allegation

The Income Tax department on Thursday conducted searches on the premises of Mankind Pharma over allegations of tax evasion, official sources said.

The department is searching the company premises in Delhi and nearby locations, documents are being checked and people are being questioned, news agency PTI quoted sources as saying.

The company made its debut on the stock exchanges on Tuesday. It also launched its IPO this year.

Meanwhile, Mankind Pharma’s shares dropped 5.5% in the morning trade after reports of income tax department searching the company’s Delhi office.

The company is engaged in developing, manufacturing and marketing a diverse range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.

In a BSE filing, Mankind Pharma said it was extending “full cooperation” to the department.

“We hereby inform you that the Income Tax Department is conducting a search at some of the premises/plants related to the company and some of its subsidiaries.

“The officials of the company and its subsidiaries are cooperating with the officials of the Income Tax Department and are responding to the queries raised by them,” it said.

This action, the company said, has had no impact on its operational performance.

“This is the only information that we are able to provide at this stage. Once the search by the Income Tax Department concludes, the Company will update the Stock Exchanges in case of any material information/event,” it said.

“Mankind Pharma Limited is an ethical and law abiding Company and follows the best corporate governance practices. We are extending our full cooperation to the officials of the Income Tax Department in this regard,” it added.

Mankind Pharma shares start their secondary market journey at Rs 1,300 apiece on BSE and NSE each — a premium of 20.4 per cent over the upper end of its issue price band.

Mankind Pharma’s initial public offering (IPO) was up for public subscription during April 25-27 and got a good response with an overall subscription at 15.32 times. The company’s listing is scheduled for tomorrow, Tuesday, May 09, 2023.

(With PTI inputs)