Shares of Dixon Technologies (India) Ltd slipped on Friday after the electronics manufacturer announced that the Directorate of Revenue Intelligence (DRI) conducted a search at one of its subsidiaries’ manufacturing facility in Noida on January 17.

Dixon Technologies’ shares hit an intraday low of Rs 6,020.00, down almost 4.5% from its last closing price on the National Stock Exchange (NSE). At noon, the stock was trading 3.2% lower at Rs 6,101.00.

The electronics manufacturing and design-focused solutions provider announced in a regulatory filing that the DRI searched the Noida manufacturing facility of one of its subsidiary companies on January 17 regarding the classification of the raw material imported for manufacturing one of the products. 

Although Dixon Tech highlighted that the search concluded at 8 PM on the same day, it did not specify the product or the raw material in question.

Dixon Technologies said that the issues raised by the DRI are interpretational, and the company has extended its full cooperation, including providing the complete information on time. However, it stands committed to defending its interpretation using all recourse available.  

The statement added that although the impact of the search on the financial, operational, or other activities of the listed entity cannot be quantified at the moment, the company does not foresee any material impact.