Man Industries says IT Dept search concluded, operations unaffected

Man Industries (India) Ltd on Monday, December 22, said the Income Tax Department concluded its search and that the business operations continued uninterrupted.

In a regulatory exchange, the company said it fully cooperated with the officials during the proceedings.

The raid comes just two months after Securities and Exchange Board of India (SEBI) barred Man Industries and three of its top executives, including the chairman, from accessing the securities markets for two years over alleged fund diversion.

According to SEBI, the company did not consolidate its unit, Merino Shelters, in its financial statements between FY15 and FY21, misstated related party transactions, and routed funds in circular transactions that obscured its financial position.

Shares of the company closed at ₹402.05 apiece, 1.48% lower than the day's opening on the NSE on Monday.

Last month, Man Industries signed an MoU with Aramco Asia India to explore a long-term supply arrangement and assess the potential for a manufacturing presence in Saudi Arabia.

The agreement is effective immediately after signing on November 19 and will remain in force for five years.

According to the press release, the two companies will evaluate the establishment of a state-of-the-art steel pipe manufacturing facility in Saudi Arabia through Man Industries or its subsidiaries.

Based in Mumbai, Man Industries is a global manufacturer and exporter of large-diameter carbon steel pipes and related products, serving the oil and gas, petrochemical, and water industries.

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