• Foreign portfolio investors incurred a loss exceeding Rs 1,900 crore as Polycab shares dropped by 21% following an income tax raid.
• The market capitalization of Polycab witnessed a staggering decline, The market cap of Polycab tumbled to Rs 58,600 crore by the day’s end.
• The income tax department’s investigation revealed unaccounted cash sales amounting to Rs 1,000 crore and cash payments of Rs 400 crore made by a distributor on behalf of Polycab India Ltd.
• The drastic drop in share value led to total investor wealth erosion reaching Rs 15,500 crore.
• Throughout the day, the lower price band for Polycab shares was revised three times due to the significant decline, indicating the volatility in the market.
• Among institutional investors, foreign portfolio investors (FPIs) held the largest share, amounting to 1.82 crore shares, making them a substantial presence among the 419 investors.
Polycab India clarifies it hasn’t received any written communication from the Income Tax Department regarding the search mentioned in the PIB press release on January 10, 2024, which didn’t specify any company.
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