IT dept raids spirit maker Som Distilleries' premises in MP, Chhattisgarh

The Income Tax department on Tuesday raided multiple premises linked to Som Distilleries and Breweries, a part of the Som Group of Companies, in election-bound Madhya Pradesh and Chhattisgarh. Ahead of the elections in Madhya Pradesh and on the day of voting in Chhattisgarh, the Income Tax department has also raided the house of Som Group owner Jagdish Arora.

Income Tax department's action comes after it received information on tax evasion and disproportionate assets, India Today reported. Som Group is a key player in the liquor business of Madhya Pradesh and Chhattisgarh and Arora brothers are considered to be the biggest players in liquor business in Central India. 

As of 11:40 am, Som Distilleries & Breweries is 5.70 per cent down to trade at 309.15 apiece on the BSE and 5.50 per cent down to trade at 309.95 apiece on the NSE.

For the quarter ended September 30, 2023, the distillery and brewery group reported a net profit of Rs 5.45 crore with a revenue of Rs 171.84 crore. During the same period, the company's consolidated income rose 72 per cent year-on-year from Rs 464 crore to Rs 269 crore in last year. 

Seasoned investor Dolly Khanna owns 8,73,429 equity shares or 1.13 per cent stake in the company as of September 30, 2023. Khanna's stake in the company is worth around Rs 29 crore as of Tuesday. 

Recently, Som Distillieries had called off its QIP (qualified institutional placement) offer worth around Rs 350 crore as it received lesser-than-expected bids. Through the QIP offer, Som Distilleries planned to raise funds for expanding its beer facility in Karnataka by 60 lakh cases annually. 

(With inputs from Ravish Pal Singh)