After IT raid, Muthoot Finance shares surge over 13%

A day after Income Tax department completed the two-day raid at the premises of Muthoot Finance, the shares of the company rose over 13% on Monday.

At 1513 hours the shares of the company were trading at Rs 400 per piece, up by 13.75% on BSE.

On Sunday, in a regulatory filing, the company said, "The officials of Income Tax Department carried out a search under Section 132 of Income Tax Act, 1961 read with Rule 1 12(1) of Income Tax Rules, 1962 at various premises of the Company which commenced at 09.00 AM on August 05, 2016 and continued till 07.00 AM on August 07, 2016".

"Company cooperated with the investigation and has provided information and clarification sought by the officials. We are confident that the Income Tax Department would have found during the search proceedings that books of accounts of the Company have been maintained satisfactorily. We are not expecting any material adverse findings against the Company by Income Tax Department".

Further, in a separate filing, the company also said that they are the highest tax payer from Kerala as they paid Rs 524 crore during 2015-16 as per the audited financial statements in FY16.