Shares of Akums Drugs and Pharmaceuticals Ltd crashed 8% on Wednesday, 22 January, after the company reported that the Income Tax department conducted a search at its offices and units. 

Akums Drugs clarified that its business operations are proceeding as usual.

The company confirmed its full cooperation with authorities, providing all necessary clarifications. It reassured investors of its commitment to corporate governance and stated that business operations remain largely unaffected, with only minor disruptions.

Akums also highlighted its dedication to fulfilling all legal disclosure requirements and pledged to provide timely updates when necessary. Despite these reassurances, the news has raised investor concerns, resulting in a decline in the stock price during trading hours.

A month ago, Akums Drugs entered into a strategic collaboration with a leading global pharmaceutical company to supply select oral liquid formulations to the European market. Following the announcement on 24 December, the stock initially surged but later fell by more than 2% during the trading session.

At 3:16 pm, the shares of Akums Drug were trading 6.21% lower at Rs 586.80 on NSE.

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