Shares of Som Distilleries & Breweries Ltd tumbled on Tuesday following reports of raids being conducted by the Income Tax (IT) department on the company’s premises in Madhya Pradesh and Chhattisgarh. 

The Som Group, one of the largest distillery and brewery groups in central India, reportedly had its premises searched by Income Tax officials in various places in both of the election-bound states, including Bhopal, Jabalpur, and Indore. 

The raids were initiated based on information related to alleged tax evasion and disproportionate assets. As of the time of writing this article, the company had not made any regulatory filings regarding these raids. 

The company is known for manufacturing a wide range of alcoholic beverages, including beer, whisky, vodka, rum, gin, ready-to-drink beverages, and country liquor. Dalal Street veteran Dolly Khanna held 8,73,429 equity shares, equivalent to a 1.13% stake in the company valued at around Rs 29 crore as of September 30, 2023. 

Som Distilleries’ shares fell to an intraday low of Rs 290.65, slipping nearly 11.3% from the last closing price on the National Stock Exchange (NSE). The scrip closed 10.23% lower at Rs 294.45.