Shares of Hero MotoCorp slid 6 per cent to 2,151.60 rupees on BSE in Friday’s daily trading based on reports that the Income Tax Department (IT) found Rs 800 crore embezzled via shell companies. The major two-wheeled stocks were trading near a 52-week low at Rs 2,148 touched on March 8, 2022.
“The spending of more than Rs 800 crore on Hero MotoCorp notebooks was not for business purposes but was made for a service from the event management company, which allegedly seized the amount, as per an income tax department investigation. It was stopped by shell companies,” according to a report by the company. business standard He said. Click here for the full report
In the past six trading days, the stock has fallen 11 percent since reports emerged of an IT raid at Hero MotoCorp’s Delhi headquarters.
For its part, Hero MotoCorp said, on Tuesday, March 29, that officials from the Income Tax Department had visited the company’s offices in the previous week. “The company has provided all necessary support and cooperation, documentation and data to the authorities and will continue to do so if required. Hero MotoCorp is a law-abiding company, with strong internal financial controls and its financial statements duly audited,” the company said.
Separately, Hero MotoCorp has launched a new variant of its scooter in the 125 cc class which is the Hero Destiny 125 XTEC with an ex-showroom price of Rs 79,900 with a regular variant offering of Rs 69,900. XTEC variants come with a host of new features that include the revolutionary i3S Hero technology (stop idle system), a front USB charger, a new analog-digital accelerometer with Bluetooth connectivity with call and SMS alerts, side mount motor cut-out and seat backrest among others.
Also, in a separate regulatory filing for the exchange, Hero MotoCorp informed the exchange that the Promoters and Promoters Group had purchased 46,100 shares of the company’s stock. By purchasing these shares, the promoter and promoter’s stake in the company will increase from 34.75 percent to 34.78 percent, the company said.