Refex Industries Hits 20% Lower Circuit

Refex Industries, a small-cap stock, saw its shares drop by 20% in one day, reaching a 16-month low.

The Income Tax Department found that the company and its associates may have evaded taxes worth over ₹1,000 crore and made unexplained investments of ₹250 crore in a Swiss pharmaceutical company.

The department also discovered bogus purchases worth ₹1,112 crore, mostly related to coal and ash-handling contracts.

Additionally, the company received a large equity contribution from individuals and entities, some of whom did not file tax returns.

The company says it is cooperating with the authorities and that its business operations are unaffected.

The stock has dropped 27% in December and 47% so far this year.