Shares of Mankind Pharma rose as much as 6 percent during intra-day trade after the fourth largest pharmaceutical company presented a clarification on raids by the Income Tax department.
The stock jumped from a low of Rs 1,357 apiece to a high of Rs 1,439 on Friday. It ended 1.21 pc higher than last day’s close at Rs 1397.15 apiece on NSE.
On Thursday, the shares of Mankind Pharma plummeted to a low of Rs 1306.65 per share in intraday trade on NSE reports of the Income Tax Department conducting raids at Mankind Pharma Ltd office in New Delhi, alleging tax evasion.
The company later published a clarification stating the Income Tax Department searched some of the premises/ plants associated with 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. This has had no impact on our operational performance,” the company said in an exchange filing.
The pharma company has not commented much on the development but assured that they would keep their investors posted on essential information.
“Once the search by the Income Tax Department concludes, we will update the Stock Exchanges in case of any material information/ event. Mankind Pharma Limited is an ethical and law-abiding company that 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, the maker of Manforce condoms and PregaNews Pregnancy test kit, was listed on Indian bourses on Tuesday, May 9, with a bumper opening, rising over 32 percent on debut day. Mankind Pharma IPO’s stellar performance enthralled the overall IPO dry spell.