Sobha shares plunge 4% as Income Tax department raids premises

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Sobha Ltd shares fell more than 4% in intraday trade on the NSE on Wednesday after the company said the income tax department raided its registered office and other premises.

Around 9:40 a.m., the stock was trading at Rs 498, down Rs 21.

"We would like to inform you that the Income Tax Department is conducting a search at Sobha Limited's registered office and other premises." Furthermore, as a responsible company, all of the Company's concerned employees/staff are extending their full cooperation to the Officials," the company stated in its exchange filing.

Sobha's stock has been on a downward trend for the past four trading sessions, including today, and has fallen nearly 9% in that time.

Over the past year, the stock has underperformed the Nifty50 index, returning a negative 33% while the benchmark fell by 0.2%. The stock is down from its 52-week high of Rs 764 set in March 2022. The 52-week low is Rs 480.20, which it reached on June 20, 2022.

In early trade, Sobha was one of three stocks in the 10-share Nifty Realty index that were trading in the red. Godrej Properties and Brigade Enterprises were the other two declining counters.

The Nifty Realty index, which tracked overall market optimism, was trading at 396.45, up 1.75 points or 0.44%. Oberoi Realty, The Phoenix Mills, and Macrotech Developers were the top gainers.

Meanwhile, the S&P BSE Sensex and Nifty50 were trading in the green around the same time. The former was up 217.08 points or 0.37% at 58,291.76, while the latter was up 71 points or 0.42% at 17,178.70.