By Nikunj Ohri and Aftab Ahmed
NEW DELHI (Reuters) -India’s income tax department is searching some of Mankind Pharma Ltd’s premises, the condom maker said on Thursday, days after its stellar debut as a public company.
The tax officials were conducting a search at some of the premises and plants related to Mankind and some of its subsidiaries, the company said in an exchange filing.
Mankind said the searches had no impact on its operational performance but did not disclose the reason for the search or other details, except saying that it was cooperating with the tax officials and responding to their queries.
“This is the only information that we are able to provide at this stage. Once the search by the Income Tax Department concludes, the company will update the Stock Exchanges in case of any material information/event,” it said.
The tax officials were searching Mankind’s office in New Delhi in a process that may last for two to three days, two government sources said, declining to be named as they were not authorised to speak to the media.
The IT department did not respond to a Reuters’ request for comment.
Mankind’s shares fell as much as 5.5% when the news broke earlier in the day, but recovered to settle 0.18% lower at 1,380.40 rupees. That is well above its initial public offering offer (IPO) price of 1,080 rupees.
Mankind made a stellar debut on the Indian stock exchange on Tuesday, surging about 32%, to value the maker of Manforce condoms at 569.76 billion rupees (nearly $7 billion), in a rare instance of a successful domestic public listing this year.
The company says Manforce is the top-selling male condom brand in India, where it competes with Reckitt Benckiser Group’s Durex and TTK Group’s Skore. ($1 = 81.7800 Indian rupees)
(Reporting by Chris Thomas and Rama Venkat in Bengaluru, Aftab Ahmed and Nikunj Ohri in New Delhi; Editing by Savio D’Souza)
