Ashoka Buildcon shares hit the 20 per cent lower circuit in Wednesday’s trade on reports of raids by Enforcement Directorate and Income Tax department on Tuesday at its premises. The joint searches at the office of the infrastructure firm in Nashik and the residence of its head were in connection with allegations that it financed certain construction by family of ex-deputy chief minister Chhagan Bhujbal, arrested last month in a money laundering case.
The share price of Ashoka Buildcon tanked 20 per cent to Rs 136. The scrip opened the day at Rs 167 and touched a high and low of Rs 167 and Rs 136, respectively, in trade. Sensex was trading 21.13 points down at 24,862.46 (at 10.21 am).
However, Ashoka Buildcon has denied any involvement with the Bhujbal construction activities. “Ashoka Buildcon Ltd clarifies that it has not contributed or financed any of the constructions of Bhujbal family including their bungalow at Nashik,” the company had said in a filing to the BSE on March 26.
In the past one year, the share price of Ashoka Buildcon slid 10.27 per cent to Rs 169.95 till April 5, whereas BSE Sensex plunged 12.70 per cent during the same period.
For the quarter ended December 2015, the company reported a consolidated net loss of Rs 2.81 crore against net loss of Rs 22.30 crore in the same quarter last year.
(With inputs from PTI)