- By Priyanka Payal
- Tue, 01 Aug 2023 01:58 PM (IST)
- Source:JND
Hero Motocorp shares traded in the red on Tuesday (August 1) after the Enforcement Directorate (ED) raided the residence of Hero Motocorp CEO Pawan Munjal in connection with a Directorate of Revenue Intelligence (DRI) case. Following this development, the share price of Hero Motocorp Ltd plummeted 4.19% at Rs 3,069.35 per share at 1:35 pm IST today.
The raid was initiated after the ED took cognisance of a Directorate of Revenue Intelligence (DRI) case. Recently the DRI apprehended one of Munjal’s close aides in possession of undeclared foreign currency. The Income Tax Department in March last year raided Munjal and his company Hero Motorcorp, the country's leading two-wheeler automobiles manufacturer, as part of a tax evasion investigation.
Hero MotoCorp positioned itself as the world's largest two-wheeler manufacturer in 2001, in terms of unit volume sales in one calendar year. The company has maintained the title for the past 20 consecutive years.
The two-wheeler manufacturer has presence across 40 countries spanning Asia, Africa, and South and Central America.
In June this year, various reports had suggested that domestic automobile major Hero MotoCorp was under government scrutiny, as the Ministry of Corporate Affairs (MCA) has also started a probe against the two-wheeler manufacturer.
Hero Motocorp shares have gained 8% in the last one year, while the stock’s year-to-date (YTD) performance is up 13%.
Coming to the Indian equity market, the benchmark indices opened higher today. The benchmark index Sensex was flat at 66,519.95 points, while Nifty 50 was unchanged at 19,751.15 points.
According to the news agency PTI report citing official sources the raids were conducted against Hero Motocorp’s Pawan Munjal and others as part of a money laundering investigation. The searches were carried out at premises located in Delhi and neighbouring Gurugram in line with provisions of the Prevention of Money Laundering Act (PMLA).