This stock rose 13% amid heavy selling in midcap and falling market, know the reason?:According to the company, these incentives will be available for a period of seven years, from January 1, 2024, to December 31, 2030

News Topical, Digital Desk : Amidst the ongoing selling environment in midcap stocks, the shares of Balaji Amines have seen a tremendous rise. Shares of Balaji Amines surged as much as 13% on Thursday, January 8. This surge came after the company reported being eligible for government incentives worth over ₹250 crore under a Maharashtra government scheme.

In a regulatory filing to the stock exchange, the company stated that the Directorate of Industries, Government of Maharashtra, has approved the expansion of its unit and issued an eligibility certificate under the Mega Projects - Investment Based 100% Gross Basis category under the Package Scheme of Incentives (PSI) 2013.

Industrial Promotion Subsidy of ₹258 Crore Under this scheme, Balaji Amines will receive an industrial promotion subsidy of ₹258 crore. This subsidy will be linked to 50% of the State GST payable on the sale of finished products in Maharashtra. Additionally, the company will also benefit from exemption from electricity duty and 100% exemption on stamp duty.

Benefits will be available for 7 years . According to the company, all these incentives will be available for a period of 7 years, from January 1, 2024, to December 31, 2030. These benefits will be in accordance with the provisions of the relevant notifications issued by the Revenue and Forest Departments of the Government of Maharashtra.

Investor confidence has increased. Experts believe that government incentives will strengthen Balaji Amines' cost structure and could positively impact profitability and cash flow in the coming years. This is why the stock saw strong buying despite a weak market.