Lux Industries shares slip over 4% as I-T dept conducts searches in company 's Kolkata premises

Shares of Lux Industries Ltd slumped over 4% today amid the news of Income Tax department conducting searches at the company's premises in Kolkata. According to news agency ANI, the I-T department is conducting raids on Lux Industries over an alleged tax evasion of Rs 200 crore by the company.

“The search is underway in multiple cities at premises linked to the company including Kolkata. Offices and residences of top officials are also covered in the raids,” said the news agency citing sources in a tweet.

The firm in response to a media report on the tax search said, “We would like to submit that survey is being conducted at our premises and the company is extending its full cooperation to the authorities. We would like to further inform that as the survey is yet to be concluded, we are unable to make assessment of its impact.”

“Once the survey concludes, the company will update the Stock Exchanges, in case there is any material impact resulting from the above survey,” the company added.

Subsequently, stock of Lux Industries slumped 4.55% intraday to Rs 1451 against the previous close of Rs 1520.20 on BSE.

Market cap of the firm fell to Rs 4427.15 crore. A total of 49.3 lakh shares of the firm changed hands amounting to a turnover of Rs 2.51 crore on BSE. Lux Industries shares have a one-year beta of 0.6, indicating very low volatility during the period.

In terms of technicals, the relative strength index (RSI) of Lux Industries stands at 49.3, signaling the stock is trading neither in the oversold nor in the overbought territory. Lux Industries shares are trading lower than the 5 day, 10 day, 20 day, 50 day, 100 day but higher than 150 day and 200 day moving averages.

Lux Industries shares have lost 10.53% this year and fallen 20.12% in the one year.

Lux Industries is engaged in the business of manufacturing and marketing of innerwear, hosiery, and related apparel products. The company offers a wide range of products including underwear, vests, briefs, and thermal wear under various brand names such as Lux Cozi, Lux Venus, and Lux Cott's Wool, among others.

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