Nandan Denim spurts after receiving sanction of subsidy

Nandan Denim rose 15.57% to Rs 89.80 at 10:03 IST on BSE after the company announced that its application for sanction of various incentives under Gujarat State Textile Policy, 2012 has been approved.

The announcement was made after trading hours yesterday, 5 September 2018.

Meanwhile, the S&P BSE Sensex was up 137.96 points, or 0.36% to 38,156.27.

On the BSE, 29,000 shares were traded in the counter so far compared with average daily volumes of 11,000 shares in the past two weeks. The stock had hit a high of Rs 92.40 and a low of Rs 80.40 so far during the day. The stock hit a record high of Rs 186.65 on 10 October 2017. The stock hit a 52-week low of Rs 60.85 on 20 July 2018.

Nandan Denim announced that the application made by company for sanction of various incentives (interest, power, VAT / GST) under Gujarat State Textile Policy, 2012 has been approved. The company expects to save Rs 65 crore on account of interest and power subsidy over a period of five years starting from December 2016. Further, the company is entitled for GST / VAT refund of upto Rs 340 crore for a period of eight years starting from December 2016.

Government of Gujarat had come out with a comprehensive textile policy in 2012 to overhaul the textile industry in Gujarat, with an aim to create jobs in the sector.

Net profit of Nandan Denim declined 67.87% to Rs 5.24 crore on 15.73% decline in net sales to Rs 357.06 crore in Q1 June 2018 over Q1 June 2017.

Nandan Denim is India's largest and world's fourth largest integrated denim fabric maker.

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