Nuvoco Vistas Corporation Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
NUVOCO · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 0.6 pts less than Nifty Smallcap 250 and 0.1 pts less than its Cement & Cement Products peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
Minute windows have no benchmark: there is no intraday index history to compare against.
The West Bengal government has passed a Revocation Act that retroactively cancels two incentive schemes (2004 and 2013) under which Nuvoco Vistas was entitled to receive Rs. 427.14 crores and its wholly-owned subsidiary NU Vista Limited was entitled to Rs. 300.44 crores in incentives. The company has already made provisions for expected credit loss of Rs. 238.22 crores (Nuvoco) and Rs. 167.58 crores (NU Vista), leaving a net exposure of roughly Rs. 321.78 crores. Based on legal opinion, the company believes the Revocation Act is unconstitutional and arbitrary, and both Nuvoco and NU Vista have filed or are filing Writ Petitions at the Calcutta High Court to challenge it. Earlier writ petitions against West Bengal Industrial Development Corporation for non-payment of these incentives were already pending.
Negative risk for shareholders given the potential loss of incentive receivables, though partly cushioned by existing provisions. The outcome of the Writ Petition at the Calcutta High Court will be a key trigger to watch — a favourable ruling could lead to recovery of the disputed amounts.