Avanti Feeds had been on a roll for some time. Even till the 11th of Nov the price rose consistently, driven by better Q2Fy20 performance and rising price of shrimp. But after it hit a 52-week high on 11th at Rs.571.20, profit booking came in and so did worry. Today, the stock is among the top five losers on the BSE, going down 7% at Rs.472.
There has been news around since 8th about an IT raid at the company’s premises and resindences of the Chairman and director. The company made the ‘official’ announcement only on 11th after the IT search was over. It said, “a search of premises of Avanti Feeds Ltd and it''s subsidiary Avanti Frozen Foods Private Limited by the Income Tax authorities under Section 132 of the Income Tax Act, 1961 was conducted from November 7th to November 11th, 2019. The Company and its officials have provided all requisite co-operation and responses.”
Last year too, in July, the IT had raided the company premises.