Shree Cements Shares Plunge 10% after reports of Rs 23,000-crore Tax Evasion

New Delhi, 26th June 2023: Shree Cements shares fell 10% in early trade on June 26 on reports that the business had reportedly avoided Rs 23,000 crore in taxes.

According to an NDTV story, an alleged Rs 23,000 crore tax fraud was discovered during tax raids at Shree Cements offices in Rajasthan’s Beawar, Jaipur, Chittorgarh, and Ajmer.

Shree Cements was trading at Rs 23,639.75 on the National Stock Exchange at 9:35 a.m., down 6% from the previous close. Minutes after the market opened, the stock reached an intraday low of Rs 22,630.75.

Volumes were high, with 83,000 shares of the company changing hands on exchanges, compared to the one-month daily traded average of 46,000.

According to NDTV, the corporation syphoned off Rs 1,200-1,400 crore in tax every year, causing the Centre and state governments to lose a significant amount of income due to “fake agreements.”

The corporation attempted to reassure investors by issuing an explanation on the exchanges.

Shree Cements said, “We would like to clarify that the survey is still going on. The entire management team of the company is available and extending full cooperation to the officials. Any information circulating in the media otherwise is incorrect and has been published without seeking prior inputs from the company.”