Prime Focus shares tank nearly 10% on I-T raids, company says operations unaffected 

Shares of Prime Focus Ltd fell nearly 10% on Wednesday as the firm on October 7 said the Income Tax Department has initiated a search proceeding under the provisions of the Income Tax Act, 2025, on the morning of October 07, 2026, at certain offices of the Company. The search is ongoing as on the date of this letter.

Prime Focus stock fell 9.51% to Rs 265.30 intra day in the current session against the previous close of Rs 293.20. Market cap of the firm fell to Rs 22,198.95 crore. Later, the stock ended 2.78% lower at Rs 285.05.

The company said it is fully cooperating with the I-T authorities and has not received any communication regarding any alleged contravention.

"As on the date of this letter, the Company has not received any communication from the Income Tax Department setting out any finding, demand or alleged contravention. The Company is therefore not in a position to comment on, and does not wish to speculate on, the other matters reported in the News Item, including the stated subject matter of the search. The Company has reached out to officials of the Income-tax department seeking necessary information in this regard. We are fully co-operating with the officials of the Income Tax Department and are providing them the necessary information, documentation and clarifications sought by them," said the firm on October 7.

The business operations of the Company continue as usual and were not impacted due to the search, it added.

Prime Focus is a Mumbai-headquartered media and entertainment services company with a presence across visual effects, animation and post-production.

The company has a strong international footprint, with overseas markets accounting for around 92% of its revenue, according to financial information disclosed on its investor centre. This high exposure to global markets makes international operations a key contributor to the company's overall business.