Correction: Punjab electricity duty exemption is Rs 88.68 Cr, not Rs 881.86 Cr

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MEGASTAR · price

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Price reaction · full curve 14 horizons · vs prior close

+1.7%1-day move

₹310.60

prior close

₹315.30

base price

After-mkt

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AI summary

Megastar Foods clarified that a prior disclosure overstated the electricity duty exemption granted by Punjab's Department of Industries & Commerce. The correct amount is Rs 88.68 Crore (not Rs 881.86 Crore), a 15-year 100% exemption from electricity duty starting 18.11.2024 or up to 100% of fixed capital investment of Rs 88.68 Cr, whichever is earlier. The error was a typo in Annexure A. The subsidy is expected to lower operating costs and improve profitability over the exemption period.

Likely market impact

Actual subsidy benefit is 1/10th of earlier reported figure — material downward correction; though still a positive cost-saving over 15 years.