Prime Focus fell 9.5% on an income tax search, then recovered the very same day

Companies No. 51 9 October 2026 · 2 min read

Prime Focus, the visual effects company of Ramayana producer Namit Malhotra, had a rough morning on October 7. Income Tax officials started a search at some of its offices, the company told BSE.

The stock reacted immediately. On NSE, it fell 9.5% to ₹265.00 from ₹292.70 the previous day. Trading was heavy too. 80.3 lakh shares changed hands, about 2.3x the average of the previous 20 sessions.

Then the company explained what it knew. At 10:56 am, BSE asked about the search and the sudden fall. Prime Focus replied at 1:29 pm that the search was still going on, but it had received no findings or tax demand. It also said business was continuing as usual. Some reports said the tax officials were looking at overseas fund transfers, but the company said it would not speculate on the reason for the search.

The market seemed to take some comfort from that. The stock stayed near its low until the company's reply, then started climbing. It closed at ₹284.00, just 3.0% below the previous day's close and 7.2% above the day's low.

It recovered about 2/3 of the morning's fall! While the Nifty 50 fell 0.76% that day.

Prime Focus fell 9.5%, then won back most of it

Prime Focus's share price on BSE every 5 minutes on October 7, 2026. Most of the fall came back after the company replied to BSE.

Share price on BSE, ₹

10:56 BSE asks the company to explain (Oct 2026)

13:29 Company replies: no finding or demand, business as usual (Oct 2026)

Low ₹265.30

The grey line is the previous close, ₹293.20. BSE's official close was ₹283.35, down 3.4%. Most trading was on NSE: 80.3 lakh shares, against 4.6 lakh on BSE.

BSE, intraday prices, announcements and bhavcopy, 7 October 2026 · 7 Oct 2026, 9:15 to 15:30

Sources