Shares of two-wheeler maker Hero MotoCorp tumbled almost 4 percent but recovered soon amid reports that the Income Tax Department is conducting search operations at 25 premises of the company.
As per a CNBC-TV18 report, I-T Department is conducting search operations at offices and residences of senior management of the company in Delhi, Gurugram and other parts of North India. The searches, which began at 7 am today, cover Hero MotoCorp Chairman Pawan Munjal's office and residence, the report further said.
Shares of Hero MotoCorp opened at ₹2433.05 against their previous close of ₹2421.30 on BSE and fell 3.82 percent to ₹2328.85. However, it recovered soon and traded 2 percent lower at ₹2373.20 around 10:50 am. The benchmark index Sensex was 106 points, or 0.18 percent, up at 58,094.95 at that time.
India’s largest two-wheeler maker is entering into the country’s thriving electric vehicle market in July through the Vida brand.
The new brand will house the New Delhi-based automaker’s emerging mobility initiatives, including upcoming launches of electric two-wheelers, Mint had reported earlier.
Customer deliveries of the first product will start later this year. The company will manufacture the electric vehicles at a factory in Chittoor, Andhra Pradesh.
Hero MotoCorp’s announcement also comes amid an ongoing arbitration with rival Hero Electric over the former’s use of the ‘Hero’ brand name for its EVs.
Last October, Hero Electric approached the Delhi high court, seeking an injunction on Hero MotoCorp from using the Hero name for its upcoming electric two-wheelers. While the court did not grant an injunction at the time, it asked both parties to settle the dispute out of court last month.