Balaji Amines jumps 10%

Shares of Balaji Amines surged over 10% today, emerging as the top gainer on the BSE, after the company disclosed eligibility for substantial government incentives linked to its Maharashtra expansion.

The stock climbed to an intraday high of Rs. 1,230, taking it well above its recent trading range, while remaining below its 52-week high of Rs. 1,946 and above the 52-week low of Rs. 1,066. The sharp move came amid strong volumes, reflecting renewed investor interest following the regulatory update.

The rally was triggered by the company’s announcement that it has received an eligibility certificate from the Directorate of Industries, Government of Maharashtra, under the Mega Projects Investment Based 100% Gross Basis category of the Package Scheme of Incentives, 2013.

Under the scheme, Balaji Amines is eligible to receive industrial promotion subsidies of up to Rs. 258 crore, linked to 50% of the state GST payable on sales of eligible finished products in Maharashtra. In addition, the company will benefit from electricity duty exemption and a 100% waiver on stamp duty, further improving the economics of the expansion.

The incentives will be available for seven years, from January 1, 2024 to December 31, 2030, providing long-term visibility on cash flow support and lowering the effective cost of capacity expansion.

From a market perspective, the incentives are seen as margin-accretive and balance-sheet supportive, especially in a capital-intensive specialty chemicals business. While the stock remains well below its peak levels, the latest development strengthens earnings visibility over the medium term and underscores the strategic importance of state-level policy support in driving capacity-led growth for domestic chemical manufacturers.