Hero Moto Shares Drop More Than 4% After ED Raids Company Chairman Pawan Munjal’s Residence
After the Enforcement Directorate (ED) searched the home of Hero Motocorp CEO Pawan Munjal in connection with a Directorate of Revenue Intelligence (DRI) probe, the company’s shares fell on Tuesday (August 1). As a result of this news, Hero Motocorp Ltd’s share price fell 4.19% to Rs 3,069.35 a share at 1:35 pm IST today.
After the ED became aware of a Directorate of Revenue Intelligence (DRI) case, the raid was carried out. One of Munjal’s close associates was recently detained by the DRI while carrying unreported foreign cash. As part of a tax evasion probe, the Income Tax Department searched Munjal and Hero Motorcorp in March of last year, the nation’s top two-wheeler manufacturer.
In 2001, Hero MotoCorp established itself as the biggest two-wheeler producer in the world in terms of volume sales in a single year. For the last 20 years in a row, the firm has retained the title.
The two-wheeler company is present in 40 nations, including those in Asia, Africa, South and Central America, and Europe.
According to many reports from June of this year, the Ministry of Corporate Affairs (MCA) has also begun an investigation into the two-wheeler company Hero MotoCorp, a prominent local automaker.
Shares of Hero Motocorp have increased 8% over the last year, and the stock has had a 13% increase year to date (YTD).
The key indexes for the Indian equities market opened higher today. The Nifty 50 remained at 19,751.15 points, while the benchmark index Sensex stood steady at 66,519.95 points.
Pawan Munjal of Hero Motocorp and other individuals were the targets of raids, according to a report by the news agency PTI citing government sources. In accordance with the Prevention of Money Laundering Act’s (PMLA) guidelines, searches were conducted at locations in Delhi and the nearby city of Gurugram.
