Balaji Amines shares jump 13%, buck the trend amidst midcap sell-off; Here's why

Shares of Balaji Amines Ltd. surged as much as 13% on Thursday, January 8, after the company said it has become eligible for over ₹250 crore in government incentives following approval for expansion under a Maharashtra state scheme.

Balaji Amines said the Directorate of Industries, Government of Maharashtra, has issued an eligibility certificate for the expansion of its unit under the Mega Projects Investment Based 100% Gross Basis category of the Package Scheme of Incentives 2013, according to a regulatory filing.

Under the scheme, the company is eligible to receive industrial promotion subsidy amounting to ₹258 crore, linked to 50% of the state goods and services tax payable on the sale of eligible finished products in Maharashtra.

In addition, the company will benefit from electricity duty exemption and a 100% waiver on stamp duty.

The incentives will be available for a period of seven years, starting January 1, 2024, and ending December 31, 2030, in line with the provisions outlined in the relevant government notification issued by the state’s revenue and forest department.