The shares of Polycab India plunged 22 percent in the morning trade on January 11.
The development come after the Income Tax department has detected "unaccounted cash sales" of about Rs 1,000 crore after it recently raided the Polycab group.
CBDT on Wednesday said unaccounted cash of more than Rs 4 crore was seized and more than 25 bank lockers were put on restraint after the searches were launched against the group on December 22 last year.
It said a total of 50 premises in Mumbai, Pune, Aurangabad and Nashik in Maharashtra, Daman, Halol in Gujarat and Delhi were covered.
Reportedly, CBDT said a large number of "incriminating" evidence in the form of documents and digital data were seized during the raids. These reveal the "modus operandi of tax evasion" adopted by the group in connivance with some of authorised distributors, it said.
The CBDT statement did not name the group but official sources confirmed it to be Polycab India Limited, Economics Times reported.
Polycab India issued a clarification to stock exchanges earlier in the day terming reports of "tax evasion by the company circulating in media" as "rumours".
