Som Distilleries Declines Over 7% Following Reports of Income Tax Search.

Som Distilleries & Breweries Ltd shares plummeted over 7% on November 7 following reports of an income tax search operation at the company’s premises but later recovered some losses.

At 11:20 am, the stock was trading at Rs 310 on the BSE, down 5.3% from its previous close, while the benchmark Sensex dipped 0.15% to 64,859 points.

According to CNBC TV-18, the income tax department initiated a search operation at various premises of Som Group of Companies across the country, including Bhopal, Jabalpur, and Indore, on November 7.

The company recently canceled its Rs 350-crore QIP offer due to poor demand. It had intended to raise funds for expanding the beer facility in Karnataka by 60 lakh cases annually. In April, they also announced a Rs 300-crore investment in a new unit in Maharashtra. Som Distilleries and Breweries is a prominent producer of various alcoholic beverages.

For the quarter ending in September, Som Distilleries reported a 72% year-on-year increase in consolidated total income, reaching Rs 464 crore from Rs 269 crore a year ago. However, on a sequential basis, the company’s total income declined 38% from Rs 760 crore in Q1 FY24.