Prime Focus shares fell 8.1% at 10:11 am on Wednesday after Income Tax Department raids at its Mumbai offices, pulling back from a 17% year‑to‑date gain.
According to CNBC‑TV18’s exclusive, the searches began in the morning and are also targeting premises of individuals linked to the company. The raids focus on foreign remittances, but specifics of the transactions remain undisclosed.
Prime Focus, a Mumbai‑based media and entertainment services firm, says 92% of its revenue comes from overseas markets. Earlier this year, the Securities and Exchange Board of India closed adjudication proceedings against the company and its directors, finding no misleading financial disclosures.
The company had also faced insolvency proceedings after a ₹353.79 crore claim by Reliance Alpha Services was admitted by the National Company Law Tribunal. NCLAT later set aside the admission and approved a settlement, concluding the corporate insolvency resolution process.
The stock, traded on NSE under the symbol PRIMEF, had been rallying before the raid. Analysts now caution that the market may see further price swings pending the outcome of the Income Tax investigation and any related regulatory developments.
Looking ahead, Prime Focus has not issued new guidance for the next quarter, and investors will likely monitor the tax department’s findings closely before making any positioning decisions.