Why Did Refex Industries’ Shares Drop by 20 Percent?
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Synopsis
On December 12, Refex Industries' shares plunged sharply by 20 percent following the announcement of an Income Tax Department search at its offices. The company has assured that it is cooperating fully with authorities while maintaining that its operations remain unaffected amidst the ongoing investigation.
Key Takeaways
- Refex Industries shares dropped by 20% following IT searches.
- Operations began on December 9 and are ongoing.
- The company is cooperating with the Income Tax Department.
- Refex has denied misleading reports circulating online.
- Business operations remain unaffected and continue without disruption.
New Delhi, Dec 12 (NationPress) The shares of Refex Industries experienced a significant drop on Friday, hitting a 20 percent lower circuit at Rs 254.35. This decline followed the company’s announcement that the Income Tax Department initiated search operations at its registered office and other locations associated with the Refex Group. The searches commenced on December 9 and were still ongoing at the time of the company's exchange filing.
In a statement to the stock exchanges, Refex Industries confirmed that both the company and its officials have been fully cooperating with the authorities, providing all necessary information during the investigation.
“We hereby inform that the Income Tax Department conducted search operations at the registered office of the Company and certain other locations associated with the Refex Group. The search operations commenced on December 09,” the filing noted.
The company also reassured that its business operations remain unaffected and continue without any interruption.
“Throughout the process, the Company and its officers have extended full cooperation to the authorities and have provided all relevant information as required,” it added.
Refex pointed out that numerous media reports and social media posts regarding the searches had emerged while the operation was still in progress, despite no official communication being released by either the company or the authorities.
According to the company, certain individuals or entities with “vested interests” have disseminated misleading or incorrect information to exploit the situation.
Refex firmly denied these speculative reports, labeling them as false, baseless, and disconnected from reality.
The company emphasized that the figures and claims presented in such discussions were inaccurate and lacked any credible evidence.
It stated that it would continue to cooperate with the Income Tax Department under the direction of its legal advisors and would provide further updates to the stock exchanges as mandated by SEBI regulations.
Refex is committed to transparency and maintaining high standards of ethical and legal compliance.
Point of View
I view this development with a focus on transparency and market integrity. The ongoing investigations into Refex Industries highlight the importance of accountability within corporate practices. It remains crucial for the company to maintain open communication with its stakeholders and adhere to regulatory standards.
NationPress
12/12/2025
Frequently Asked Questions
Why did Refex Industries' shares drop?
The shares fell due to search operations initiated by the Income Tax Department at the company's offices.
Is Refex Industries cooperating with the authorities?
Yes, Refex Industries has confirmed that it is fully cooperating with the authorities during the investigation.
Will Refex’s business operations be affected?
According to the company, its business operations remain unaffected and continue without any disruption.
What has Refex Industries said about misleading reports?
Refex Industries has denied speculative reports, calling them false and baseless, and emphasizes their commitment to transparency.
What regulations does Refex need to comply with?
Refex Industries is required to provide updates to the stock exchanges as per SEBI regulations.
