On Thursday, two government sources told Reuters that India’s income tax agency is searching Mankind Pharma Ltd.’s (MNKI.NS) New Delhi office days after the condom maker’s successful stock market debut.
The announcement dropped the company’s stock by 5.5%.
The second source estimated two to three days for the searches. Neither source explained the search. Due to media restrictions, they declined to be named.
Reuters received no responses from Mankind Pharma or the IT department.
In a rare domestic public offering this year, Mankind Pharma shares rose 32% on Tuesday, valuing the creator of Manforce condoms at 569.76 billion rupees (almost $7 billion).
On Thursday, the stock was down roughly 2% at 1,360 rupees but still above its 1,080 rupee IPO price.
Mankind Pharma’s Manforce competes with Durex and Skore in India.
