FirstCry shares crash 6% as GST department initiates investigation
What's the story
Shares of Brainbees Solutions, the parent company of popular kidswear brand FirstCry, fell by 5.66% to ₹590 at the closing bell today. The market reaction came after the company announced that the GST department in Mumbai is investigating it. The probe was launched by the Assistant Commissioner of State Tax, Mumbai on November 6.
Probe details
Investigation targets FirstCry's head office and warehouse
The GST department's investigation is centered on Brainbees Solutions's head office in Pune and a warehouse located at Bhamboli in Maharashtra. The company revealed this in a stock exchange filing. The probe was conducted under sub-section (1) / search under sub-section (2) of Section 67 of MGST Act 2017. Brainbees Solutions said that its operations have not been affected by the probe and are continuing as usual.
Company response
FirstCry assures cooperation and commitment to integrity
In light of the investigation, Brainbees Solutions has promised complete cooperation with GST officials. "We would like to emphasise that the company has always maintained high standards of integrity, corporate governance, and compliance in all aspects of its operations, including the prompt payment of applicable taxes," said the firm. "We remain committed to upholding these standards. The company will provide material updates on this matter to the stock exchanges, as applicable."