FirstCry Shares Drop Over 4% Amid GST Investigation by Mumbai Tax Authorities

Shares of Pune-based FirstCry, operated by Brainbees Solutions, slipped 4.5% intraday on the Bombay Stock Exchange (BSE) to a day’s low of Rs 597.80 after the Mumbai GST department initiated an investigation into the company and inspected its headquarters in Pune, as well as one of its warehouses in Bhamboli, Maharashtra.

In its filing with the stock exchange, the company disclosed that on November 6, 2024, an Assistant Commissioner of State Tax, Mumbai, conducted the search and inspection. The company stated that these searches/inspections were conducted under Section 67 of the Maharashtra Goods and Services Tax (MGST) Act 2017, which permits searches and inspections under specified circumstances.

Brainbees Solutions informed stakeholders that it is fully cooperating with officials and providing all clarifications and details requested by the department. It also added that the investigation has not disrupted any of its regular operations, which are continuing as usual.

Furthermore, the company highlighted that integrity, corporate governance, and compliance, including prompt tax payments, are fundamental aspects of its operations. It assured that material updates on the matter would be shared with stock exchanges as necessary.

In a separate filing, Brainbees Solutions also informed investors that a board meeting is scheduled for November 14, 2024. The meeting will consider and approve the unaudited financial results (both standalone and consolidated) of the company for the quarter and half-year ending on September 30, 2024.

According to BSE analytics, FirstCry’s share price has declined by 4.2% over the last month and by a steeper 6% over the past two weeks. This decline comes amid scrutiny from tax authorities, which could impact investor sentiment toward the company.