Alkem lab share price: Significant instances of tax evasion have been discovered by the Income Tax department’s Investigation Wing during its investigation of Alkem Laboratories, a well-known pharmaceutical company. As per well-informed sources, the department found out that the company had overstated and made fraudulent claims for deductions related to its Sikkim manufacturing units. An estimated Rs 1,000 crore is involved in these purported deductions, many of which are made under specific sections like 80 IC.
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Alkem lab share price: Allegations of Tax Evasion
Moreover, the inquiries demonstrated that Alkem Laboratories had been paying physicians and other healthcare professionals large sums of money—hundreds of crores of rupees. The alleged purpose of these payments was to sway doctors’ recommendations for medications made by Alkem Laboratories.
The Income Tax department surveyed Alkem Laboratories’ premises in September of the previous year in response to reports of the company’s substantial tax evasion. The department is currently recording statements from pertinent officials and carefully reviewing the company’s data and balance sheets as part of the ongoing investigation.
Alkem Laboratories Response
Alkem Laboratories vehemently denied the allegations made in media reports alleging tax evasion. The company claimed that the information published was factually incorrect and that it was unaware of any information that could have an impact on the trading of its equity shares. The company reiterated its commitment to compliance, transparency, and ethical business practices during the survey proceedings conducted in September 2023, emphasising its full cooperation with officials from the Income Tax department.
Overview of Alkem Lab share price
Among the 705 branded generic medications in Alkem Laboratories’ portfolio, 13 were ranked in the top 300 brands in India for the 2015 fiscal year. The company runs 21 manufacturing facilities, with two in the US and 19 in India. Alkem Laboratories was established in 1973 as a healthcare marketing company by Late Samprada Singh and his brother BN Singh. The company started manufacturing in 1978 and its first plant was located in Taloja, Mumbai. With a strong focus on the US market, the company is currently ranked as the fifth-largest pharmaceutical company in India based on domestic sales. It is present in over 40 international markets.
Investors in the pharmaceutical company are feeling anxious following allegations of tax fraud amounting to ₹1000 crore. Today, Alkem Labs’ shares dropped by 10%. Reports from the media suggest that the Income Tax Department has uncovered this alleged tax fraud. Despite showing strong returns of over 28% in the past six months, the company’s stock fell by approximately 13% by 1:15 pm. Over the last year, it has yielded returns of more than 45%.
Alkem Lab share price response after news
As of 1:00 pm, the company’s shares were being traded at Rs 4879.05, marking a 10% decline. Its 52-week high stands at Rs 5,519.10, while the low is Rs 3042.30.
These allegations surfaced in a report by India Today TV, citing sources. In September of the previous year, the Income Tax Department conducted a survey of Alkem’s offices and premises following intelligence indicating potential large-scale tax evasion. Subsequently, the department conducted a thorough investigation over several months, recording statements from officers and scrutinising the company’s balance sheet.
FAQs
- Q: What led to the investigation into Alkem Laboratories?
- A: Reports of potential tax evasion prompted the Income Tax department to conduct a survey of the company’s premises.
- Q: How has the market responded to the allegations against Alkem Laboratories?
- A: Investors have shown concern, leading to a significant decline in the company’s share prices.
- Q: What is Alkem Laboratories’ market position?
- A: Alkem Laboratories is the fifth-largest pharmaceutical company in India based on domestic sales, with a strong presence in over 40 international markets.
- Q: What steps has Alkem Laboratories taken in response to the allegations?
- A: The company has denied the allegations and reiterated its commitment to compliance, transparency, and ethical business practices.
- Q: How significant are the alleged deductions made by Alkem Laboratories?
- A: The deductions, estimated at Rs 1,000 crore, raise serious concerns about financial integrity and regulatory compliance.
Disclaimer: The information in this “Stock Profile” blog post is for informational purposes only. It is not financial advice. Always consult a qualified expert before making investment decisions.
