Shares of Hero MotoCorp rose 3 per cent in early trade today after the two-wheeler major denied media reports which said that the Income Tax Department was analysing Rs 1,000 crore of bogus expenses at the firm. Hero MotoCorp stock gained 3.1 per cent to Rs 2,277 against the previous close of Rs 2,208.35 on BSE. The large cap stock has gained after three days of consecutive fall.
Hero MotoCorp stock is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
A total of 0.37 lakh shares of the firm changed hands, amounting to a turnover of Rs 8.27 crore. Market cap of the firm fell to Rs 45,397 crore on the BSE.
The stock hit a 52-week high of Rs 3,089 on June 9,2021 and a 52-week low of Rs 2,148 on March 8, 2022.
On Tuesday, the large cap stock was the top Nifty loser, closing 6.68 per cent lower at Rs 2,219 against the previous close of Rs 2,377.95.
On BSE, shares of Hero MotoCorp lost up to 9.32 per cent to Rs 2,155 on Tuesday against the previous close of Rs 2,376.60 on the BSE. Later, the shares closed 7.08 per cent lower at Rs 2,208.
After the market hours on Tuesday, the firm in a clarification to exchanges said, "The allegations made in the press report are not borne out of any document that have been served on us or our internal documents. Therefore, we categorically deny the speculative press reports."
The company said it had provided all support and cooperation, necessary documents and data to the I-T Department officials and would continue to do so if required.
"As and when the tax department concludes its findings and communicates to us, we will inform the exchanges suitably. Hero MotoCorp is a law-abiding corporate, with robust internal financial controls and its financial statements are duly audited," it added.
Earlier in March, the I-T department conducted raids at the offices and residences of the promoters of Hero MotoCorp, including managing director Pawan Munjal. Statements of those present were recorded and a panchnama was done.
In a related development, Hero MotoCorp announced that it would raise ex-showroom prices of its motorcycles and scooters by up to Rs 2,000 from April 5, 2022.
The price revision has been necessitated to partially offset the impact of increasing commodity prices, the automaker said in a statement.
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