• 20 Oct 2023 06:13 PM
  • Back

Stock to Watch: Dabur shares dip on cancer allegations in US, GST tax evasion notice

news details
Stock in focus: Shares of Dabur India Ltd are under perssure as the company has received intimation from the Goods and Services Tax (GST) Intelligence of tax ascertained as being payable by the company. Informing Indian stock market exchanges about the tax intimation, Dabur India said that it is reviewing the intimation and evaluating the next steps in this matter.

Stock in focus: Shares of Dabur India Ltd are under perssure as the company has received intimation from the Goods and Services Tax (GST) Intelligence of tax ascertained as being payable by the company. Informing Indian stock market exchanges about the tax intimation, Dabur India said that it is reviewing the intimation and evaluating the next steps in this matter. 

The company also informed about the US litigation(s) pending against its subsidiary companies — Namaste Laboratories LLC, Dermoviva Skin Essentials Inc and Dabur International Ltd. The company is facing allgations of cancer spread from its drugs. However, the company claimed that litigations are in 'pleading stage' and it would keep Indian bourses posted if there is any further development in this regard.

Dabur shares under pressure

Dabur shares witnessed selling pressure during morning deals on Thursday. Dabur share price today opened lower and went on to hit intraday low of 520.50 apiece on NSE, logging near 2 per cent dip against its Wednesday close of 534 per share levels.

Clarification on US litigations

Issueing clarification about the US litigations, Dabur India said, "Pursuant to provisions of Regulation 30 read with sub-para 8 of Para B of Part A of Schedule Ill of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), as amended, we hereby submit the disclosure regarding litigation(s) pending in the United States of America, against Namaste Laboratories LLC ("Namaste"), Dermoviva Skin Essentials Inc. ("Dermoviva") and Dabur International Ltd. ("DINTL"), all of which are subsidiaries of Dabur India Limited."

"Currently, the cases are in the pleadings and early discovery phases of litigation. There are various motions pending as well. Since we are in the initial stage of litigation, any final quantum of claim amount is neither probable nor estimable. However, the Company is disclosing the details of aforesaid pending litigations, since the cumulative value of impact on account of legal defence cost is expected to breach the materiality threshold under the Listing Regulations," Dabur India said.

GST intelligence notice

Dabur India also informed Indian stock market bourses about the intimation by GST intelloigance citing, "Pursuant to provisions of Regulation 30 read with sub-para 20 of Para A of Part A of Schedule Ill of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), as amended, we hereby submit the disclosure regarding Intimation of tax ascertained as being payable by the Company under Section 74(5) of CGST Act, 2017 received from Directorate General of Good and Services Tax Intelligence. The Company is reviewing the intimation and evaluating the next steps in this matter."