Gallantt Ispat Limited has been disbursed a significant subsidy of ₹233.55 crore by the State Government of Uttar Pradesh under the Infrastructure and Industrial Investment Policy. The grant represents a refund of State Goods and Services Tax (SGST) applicable through June 2025. As a debt-free company regarding term and unsecured loans, the organization has strategically deployed these funds into fixed deposits, totaling ₹300.01 crore to bolster its surplus capital position.
Subsidy Disbursement Details
Gallantt Ispat Limited announced the receipt of a ₹233.55 crore subsidy from the Uttar Pradesh state government. This financial support is part of the state’s industrial investment policies, specifically providing a refund of State Goods and Services Tax (SGST) paid by the company. The scope of this refund covers operational activities up to the period ending June 2025, providing a substantial boost to the company’s cash reserves.
Strategic Deployment of Funds
Following the receipt of the subsidy, the company has confirmed its strong balance sheet position, noting it is currently not availing any term loans or unsecured loans. Due to the surplus nature of these funds, Gallantt Ispat has consolidated the subsidy with existing surplus cash and invested the total into fixed deposits with HDFC Bank Limited.
Impact on Financial Liquidity
The total value of these fixed deposits now stands at ₹300.01 crore. This liquidity management strategy highlights the company’s focus on maintaining a debt-free status while securing its capital for future operational requirements. By parking these funds in low-risk interest-bearing instruments, the company ensures both the preservation of capital and the generation of additional yield from its industrial incentive gains.
Source: BSE
