Share prices of 360 One Wam Ltd., IIFL Finance Ltd and IIFL Capital Services Ltd. declined during early trade on Tuesday after reports of searches by income tax officials at IIFL Group offices in Mumbai's Lower Parel.
Both 360 One Wam and IIFL Finance shed nearly 9%, while IIFL Capital Services fell 6% intraday.
The IT searches are underway at multiple floors of 360 One building since morning. The staff is not reachable as phones and other digital devices have been seized by officials to be examined on multiple levels of the building, according to people in the know.
Tax officials suspect multi-crore tax evasion and are questioning senior executives and accountant. Documents have also been seized.
Phones seized during searches at IIFL Group companies. (Photo credit: Agnidev Bhattacharya/ NDTV Profit)
A day prior, 360 One Wam's board approved the acquisition of Batlivala & Karani Securities India for Rs 1,774 crore and Batlivala & Karani Finserv for Rs 110 crore on a fully diluted basis.
The company's net profit in the December quarter rose 12.6% sequentially to Rs 276 crore. Revenue fell 12% to Rs 760 crore. The results were announced after market hours on Monday.
Jefferies maintained a "Buy" rating on the stock with a target price of Rs 1,350, citing a strong quarter driven by sustained outperformance in wealth ARR inflows and stable retentions. The new acquisition multiple highlights demand from near-term synergies, while investment banking and small and midcap broking are expected to complement the wealth franchise over the long term.
UBS said 360 One's asset under management growth remained solid despite lower net flows, and management anticipates synergies between the broking business and its wealth and asset management segments.
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