Lux Industries Shares Fall Over 3% After I-T Dept Raids Company Premises In Kolkata

Lux Industries shares plummeted 3.22% at Rs 1471.25 per share on Friday after there were reports that the Income Tax department conducted searches at the company's premises in Kolkata.

Later, the company issued a clarification to a news item that appeared in CNBCTV 18 dated September 22, 2023, captioned "Income Tax department conducting searches at Lux Industries Limited in Kolkata" and confirmed that the IT Dept is conducting searches at its premises. It said, "survey is being conducted at our premises and the company is extending its full cooperation to the authorities."
"Once the survey concludes, the Company will update the Stock Exchanges, in case there is any material impact resulting from the above survey," the company added.

The Income Tax department has reportedly alleged tax evasion of Rs 200 crore by the company. Offices and residences of top officials are also covered in the raids, news agency ANI reported citing sources.

Lux Industries - earlier Biswanath Hosiery Mills, is involved in the manufacturing and exports of innerwear for men, women, and kids. It offers hosiery products.

The company's net profit declined 57% to Rs 44 crore in the April-June quarter of fiscal 2023-2024. During this period, the revenue from operations rose 23% to Rs 715 crore. The company commands a market capitalization of Rs 4,424.30 crore. In a letter dated August 16, 2023, the company informed that the Annual General Meeting of the Company (AGM) of the Company is scheduled to be held on September 29, 2023.