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Dishman Carbogen gains 10% after I-T dept concludes searches

Shares of Dishman Carbogen Amcis Limited halted its losing run on Thursday to hit the 10 per cent upper circuit on the BSE at Rs 79.30, recovering 12 per cent from its early morning low after the company said the Income-Tax (I-T) department had concluded searches at its offices and manufacturing sites. The stock hit an all-time low of Rs 71 in intra-day trade today.In a regulatory filing, the company today said the I-T department’s search operation was concluded on Wednesday (December 25, 2019).

Earlier, in past three trading days, the stock of pharmaceutical company tanked 38 per cent on the I-T raid.In a regulatory filing on December 19, the Ahmedabad-based company had 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.”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.”Company has extended full co-operation to the officials during the search and provided all the information sought. The search operation was concluded on 25th December, 2019,” the company said.”We at Dishman Carbogen Amcis Ltd., follow the highest standards of Corporate Governance and Financial Discipline. Our systems and processes are benchmarked by competent auditing and accounting standards, our dealings with our partners, investors, financial institutions and our clients are transparent and of the highest Industry standards,” it said.

Moreover, Motilal Oswal Asset Management Company Limited sold 2.46 million equity shares of Dishman Carbogen Amcis at an average price of Rs 73.71 per share on Tuesday via block deals. The asset management company had sold 812,573 equity shares of the company at Rs 73.62 apiece on the BSE, while sold 1.64 million equity shares on the NSE.

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) was changed to Dishman Carbogen Amcis.

At 10:23 AM today, the stock had pared some gain and was trading at Rs 77.75, up 7.84 per cent as compared to a flat Sensex. Earlier, the stock opened at Rs 71, its fresh all-time low before the company informed the exchanges about the development. A combined total of 1.1 crore shares of the company have changed hands on the NSE and BSE so far.

Source: Business Standard