Hero MotoCorp shares dip 4 per cent on reports of Income Tax searches

The share price of the India's largest two-wheeler maker, Hero MotoCorp, slumped by nearly 4 per cent on Wednesday after the Income Tax Department raided several premises linked to the senior management of the company, including its chairman and MD Pawan Munjal, over alleged tax evasion.

Trading in Hero MotoCorp Ltd shares started on a positive note at Rs 2433.05 against its previous day's close of Rs 2421.30. However, the stock fell sharply after the report of the I-T raids emerged.

The scrip dipped to a low of Rs 2328.85 in the early morning trade, which is 3.81 per cent lower from its previous day's close. The scrip pared part of the losses later in the day.

At 13.12 pm, it was trading 1.62 per cent down at Rs 2382.10.According to official sources, the Income Tax Department started searches at several locations in Delhi, Gurugram and in other parts of North India linked to top management of the two-wheeler giant on Wednesday morning.

Meanwhile, Hero MotoCorp has issued a statement regarding the income tax raids, calling it a 'routine inquiry'.

“Officials from the Income Tax department visited two of our offices in Delhi and Gurugram and the residence of our Chairman & CEO Dr. Pawan Munjal on Wednesday. We have been informed that this is a routine inquiry, which is not uncommon before the end of the financial year."

"We reassure all our stakeholders that it continues to be business as usual."

"We at Hero MotoCorp are an ethical and law-abiding corporate, and maintain the highest standards of impeccable corporate governance. In keeping with this philosophy, we are extending our full cooperation to the authorities.”