Balaji Amines Ltd shares surged 13% on Thursday, January 8, reaching new highs as the company announced receiving eligibility for over ₹258 crore in government incentives. The rally follows the Maharashtra government's approval for the company's expansion under the mega project investment scheme, bucking the broader midcap sell-off trend.

Enhanced Government Subsidy Package

The Directorate of Industries, Government of Maharashtra, has issued an eligibility certificate for Balaji Amines' unit expansion under the Mega Projects Investment Based 100% Gross Basis category of the Package Scheme of Incentives 2013. The updated approval brings a comprehensive subsidy package valued at ₹258.00 crore, representing an increase from the initially announced ₹250.00 crore.

The industrial promotion subsidy is directly linked to 50% of the state goods and services tax payable on the sale of eligible finished products within Maharashtra. The incentive package provides complete exemption from electricity duty and stamp duty, delivering significant cost advantages for the company's expanded operations.

Stock Performance Amid Market Volatility

Balaji Amines' 13% surge stands out against the broader midcap sell-off, demonstrating strong investor confidence in the government incentive package. The stock's performance reflects market optimism about the company's expansion prospects and cost reduction benefits from the mega project status.

Strategic Impact and Timeline

The seven-year incentive period, running from January 1, 2024, to December 31, 2030, provides Balaji Amines with substantial long-term financial support for its expansion activities. The scheme aligns with Maharashtra's industrial development objectives, particularly targeting growth in districts where the company operates its facilities.

Recent Financial Context

The government incentive approval comes as Balaji Amines continues to navigate challenges in the specialty chemicals sector. The company's recent quarterly performance showed mixed results with revenue from operations at ₹340.50 crore and net profit of ₹34.50 crore, maintaining stable operating margins of 17.50%.

The enhanced subsidy package is expected to support the company's expansion plans and improve future financial performance through reduced operational costs and enhanced tax benefits from the mega project status under the Maharashtra government's industrial promotion scheme.

Balaji Amines Limited has disclosed the creation of an encumbrance on promoter shares under Regulation 31 of SEBI Takeover Regulations. The disclosure, dated January 2, 2026, pertains to the pledging of shares by promoter Ande Srinivas Reddy to secure credit facilities for business operations.

Share Pledge Details

The encumbrance involves the pledging of shares by promoter Ande Srinivas Reddy to HDFC Bank Limited. The transaction details are structured as follows:

Promoter Shareholding Position

Ande Srinivas Reddy's overall shareholding in the company demonstrates his significant stake in Balaji Amines Limited:

Purpose and Regulatory Compliance

The pledge has been created as security for availing credit facilities from HDFC Bank Limited. These credit facilities will be utilized for the company's principal business activities, indicating the funds will support core operational requirements.

The disclosure was made in compliance with Regulation 31(1) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The company has informed both BSE Limited and National Stock Exchange of India Limited about this encumbrance creation.

Corporate Communication

The formal disclosure was signed by Ande Srinivas Reddy as the authorized signatory from Hyderabad on January 2, 2026. The communication was addressed to the General Manager of Corporate Services at BSE Limited and the Manager of Listing Department at National Stock Exchange of India Limited, ensuring compliance with stock exchange notification requirements.