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Last Updated : Apr 06, 2016 10:47 PM IST | Source: Moneycontrol.com

Ashoka Buildcon shares tank 20% on ED & I-T raid at head office

ICICIDirect says though the management has clarified earlier (March 26) that it has not financed any construction, it still awaits further details from the company post the ED and IT raids.


Moneycontrol Bureau


Ashoka Buildcon shares are locked in 20 percent lower circuit at Rs 136 (a 52-week low) amid high volumes on Wednesday. Media reports indicated that Enforcement Directorate (ED) and Income Tax (I-T) department have conducted joint searches at the company's head office in Nashik, Maharashtra. There were pending sell orders of 81,818 shares, with no buyers available, at 11:36 hours IST.


According to media reports, the Enforcement Directorate (ED) and Income Tax (I-T) department have conducted joint searches at the head office of Ashoka Buildcon and residence of its promoter in connection with allegations that it financed certain constructions by family of former Maharashtra Deputy Chief Minister Chhagan Bhujbal. Chhagan Bhujbal was arrested last month in a money laundering case.


ICICIDirect says though the management has clarified earlier (March 26) that it has not financed any construction, it still awaits further details from the company post the ED and IT raids.


According to the brokerage, the issue may take a while to get resolved and will continue to be an overhang on the stock. Hence, adhering to caution, it advises investors to exit the stock.

On March 26, the company informed exchange (in its reply regarding certain allegations in media) that it has not contributed or financed any of the constructions of Bhujbal family including their bunglow at Nashik. It also clarified that it has not sponsored the trip of Sameer Bhujbal then MP to watch and attend the FIFA World Cup in South Africa.



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First Published on Apr 6, 2016 11:50 am
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