Following media reports of nationwide income tax raids on their offices, shares of Indiabulls Group companies have plummeted. This conglomerate has diverse interests in financial services, lending, and real estate development.
Income Tax Raids on Indiabulls Offices
Sources from DNA newspaper revealed that the raids were conducted at the Delhi and Mumbai offices of Indiabulls Housing Finance, Indiabulls Real Estate, and Indiabulls Ventures. It's worth noting that Indiabulls Housing Finance holds the position of the second-largest private housing finance company in India.
Indiabulls Housing Finance's Response
In a statement to the Bombay Stock Exchange (BSE), Indiabulls Housing Finance confirmed the presence of income tax officers at their offices, characterizing the visit as a routine inspection of their financial records. They stated that the officers "came to our offices to check out books in the normal course".
Impact on Share Prices
The market reacted swiftly to the news of the raids, impacting the share prices of various Indiabulls entities. The shares of Indiabulls Ventures experienced a significant decline of 10%, reaching Rs 30.85. Indiabulls Real Estate shares also faced a downturn, trading 9% lower at Rs 87.25. Indiabulls Wholesale shares were traded at 5% lower at Rs 28.20, while Indiabulls Housing Finance witnessed a 6% drop, with its shares trading at Rs 697.90.