Akums Drugs Share Price Falls Following Income Tax Search
Business operation of Akums Drugs will continue as usual except for some minor hiccups, the company said.
Share price of Akums Drugs & Pharmaceuticals Ltd. fell over 6% on Wednesday after the company said that the Income Tax Department was conducting search at the offices and manufacturing units of the company.
The pharmaceutical company in an exchange filing on Wednesday said that it is cooperating with the officials of the IT department during the search. The business operation of the company will continue as usual, except for some minor hiccups, Akums added.
"We will continue to provide any further clarification/information that may be required," the company said in the regulatory filing.
"Our procedures and documentation strictly adhere to legal and regulatory requirements, ensuring complete compliance and fostering trust among stakeholders. While the matter remains under review, we have fully cooperated with the Department and are committed to supporting the process," Akums spokesperson told NDTV Profit.
Akums Drugs and Pharmaceutical in December had signed a pact with a global pharma company, under which, it will manufacture and supply selected pharmaceutical formulations in European market. The filing did not disclose the name of the 'large global pharma company' and said it has over $10 billion or Rs 85,203 crore in revenue.
The commercial supply of these products from Akums will commence in 2027. The composite value of the agreement is approximately 200 million euros or Rs 1,760 crore.
Akums Drugs Shares Fall Over 6%
Shares of Akums Drugs fell as much as 6.47% to Rs 585.20 apiece, the lowest level since Dec. 26. It pared losses to trade 4.82% lower at Rs 595.50 apiece, as of 11:20 a.m. This compares to a 0.13% advance in the NSE Nifty 50.
It has fallen 25.21% in the last 12 months. Total traded volume so far in the day stood at 1 times its 30-day average. The relative strength index was at 41.
The one analyst tracking the company maintains a 'buy' rating, according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 39.8%.
