Nandan Denim surges 14% on receiving sanction of subsidy

This would enable the company to save Rs65cr on account of Interest and Power Subsidy over a period of five years starting from December, 2016.

Sep 06, 2018 11:09 IST India Infoline News Service

Shares of Nandan Denim, a manufacturer of denim fabric, were trading 14% up on receiving an approval for various incentives including interest, power, VAT, GST, under Gujarat State Textile Policy, 2012.

This would enable the company to save Rs65cr on account of interest and power subsidy over a period of five years starting from December, 2016, the company said in a press note on Wednesday after market hours. 

Additionally, the company is entitled for GST, VAT refund of upto Rs340cr for a period of eight years starting from December, 2016, the company added.

”We are thankful to the state government for accepting our request and giving the necessary sanctions. With this announcement, the Company expects to have substantial inflows in the coming years. The move will further enhance Nandan Denim’s position as a formidable force in the Indian & Global Textile Industry”, said Deepak Chiripal, CEO of the company.

Nandan Denim share price is currently at Rs88.65, up by Rs10.95 or 14.09% from its previous closing of Rs77.70 on the BSE.

The scrip has opened at Rs83.15. It has touched a high and low of Rs92.40 and Rs80.40, respectively. So far 5,09,569 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs373.34cr.

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