Income Tax Department raids at Mankind Pharma Office over alleged Tax Evasion

The Income Tax Department raids the office of Mankind Pharma. The media has contacted the company and is awaiting a response. The company’s shares fell as much as 6 percent, coming days after the condom maker went public following a sharp rally.

Searches are being on the company premises in Delhi and nearby locations, documents are being checked and people are being questioned as part of the action launched early morning, sources told.

This action has been taken because, it is claimed that there have been some evasion of taxes by this pharma company.

The company made its debut on the stock exchanges in start of this week. It also launched its IPO this year. The pharmaceutical and consumer health company’s over Rs.4,300 crore initial public offering (IPO) opened for subscription on April 25 and concluded on April 27.

Mankind Pharma received 15.32 times subscription last month on his initial public offering. Out of the 77 anchor investors, 44 are domestic mutual fund houses that have participated in the anchor round via different schemes. Notable domestic fund houses that have taken part include HDFC Mutual Fund, SBI Mutual Fund, and ICICI Pru MF, among others.

Incorporated in 1991, Mankind Pharma 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.

More Investigation details are awaited.