Tax windfall today moved Mangalam Cement scrip higher on the BSE. The scrip was cheered by the fact that company has received a tax exemption for sale from its second unit.
The scrip hit the upper limit of 20 per cent at Rs 12.73. In the afternoon trades, the scrip surged up 10.27 per cent to Rs 11.70.
This was a marked rise from a low of Rs 10.75 hit earlier in the day. A total of 26,644 shares changed hands on the BSE today.
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Mangalam Cement announced early that the Rajasthan government has granted an exemption of tax up to 75 per cent in respect of goods manufactured and sold in Rajasthan by its second unit as well as that sold in the course of inter-state sales.
The company had an earlier exemption of 25 per cent on tax liability in respect of goods manufactured and sold in Rajasthan and 75 per cent of the tax liability for the goods sold in the course of inter-state sales. The new exemption criterion will be available till April 4, 2005.
The company can look forward to an improvement in financials as a result of this exemption. It is currently making losses.