 "Divgi TorqTransfer Systems surges 11% on Maha govt's 'mega project' status")
Shares of Divgi TorqTransfer Systems zoomed 10.6 per cent at 787.15 per share on the BSE in Friday’s intraday. This came after the company received a letter from the Ministry of Industries, Energy, Labour and Mining Department, of Government of Maharashtra.
The letter conferred the status of “Mega Project” at one of the companies project situated at Chordia Industrial Park, in district of Satara. The company’s project qualified for the status on the basis of level of fixed capital investment under the Electric Vehicle Policy 2018.
To foster sustainable growth, generate employment, and position Maharashtra as a leader in the development of the electric vehicle (EV) manufacturing and service sectors, the government introduced the Electric Vehicle Policy 2018.
The policy includes provisions for mega units dedicated to manufacturing EVs, their components, and batteries. A mega project under this policy qualifies if it involves a Fixed Capital Investment (FCI) of Rs. 250 crore or creates 500 jobs.
The mega project status offers multiple incentives to the company including electricity duty exemption for 7 years from the start of commercial production, 100 per cent exemption from Stamp Duty and Industrial Promotion Subsidy (IPS) equal to 100 per cent of eligible investments made between April 1, 2021, and March 31, 2026, or up to 50 per cent of the SGST payable over 7 years based on 50 per cent of turnover, whichever is lower, the company informed in an exchange filing on Friday.
The Pune based auto components company provides torque transfer and transmission solutions to OEMs encompassing utility, passenger, commercial, electric and agriculture vehicles in India and around the world.
At 02:17 PM; the stock of the company was trading 7.12 per cent higher at Rs 762 per share on the BSE. In comparison the BSE Sensex fell 0.34 per cent to 79,777 levels.
At present, the shares of the company are trading at a price to earnings multiple of 54.75 times with an earning per share of Rs 12.99.