Dolly Khanna portfolio stock Som Distilleries cracks 9% on reports of I-T raid

Shares of Som Distilleries & Breweries Ltd corrected about 9 per cent on Tuesday amid the reports of raids by the Income Tax Department. The I-T department conducted raids at premises of brewery players in Madhya Pradesh and Chhattisgarh as per India Today sources.

According to Ravish Pal Singh, Reporter of India Today Group, premises of Som Group, one of the biggest distillery and brewery groups of central India, were searched by the Income Tax officials in both the election-bound states. Chattisgarh is having the first phase of elections on Tuesday, November 7.

However, the company did not have any regulatory filing regarding the raids and searches as of the time of writing this report. The Dolly Khanna-backed player reported a net profit Rs 5.45 crore with a revenue of Rs 171.84 crore in the quarter ended September 30, 2023.

Search operations and raids are being conducted on multiple spots in Bhopal and other places in the aforementioned states. I-T department officials raided offices and house of promoters of the company, Jagdish Kumar Arora early in the morning in the over information about tax evasion and disproportionate assets.

Shares of Som Distilleries & Breweries tumbled about 9 per cent to Rs 304 on Tuesday, from day's high at Rs 333.95, with its market capitalization falling below Rs 2,400 crore. The stock had settled at Rs 327.85 in the previous trading session on Monday.

Seasoned investors and Dalal Street veteran Dolly Khanna owned 8,73,429 equity shares, or 1.13 per cent, stake in the company as of September 30, 2023. Her stake in the company was worth about Rs 29 crore as of Tuesday.

The company recently introduced a new strong beer named 'Legend' in the state of Karnataka. The introduction of this exceptional, high-alcohol beer is a strategic move aimed to garner a meaningful market share in the state of Karnataka in the medium term.

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