Star Cement exempted from buyback tax, stock gains

The announcement of Hon’ble Finance Minister regarding tax on buy back of listed companies saved buyback tax of many companies including Star Cement.

On 27th August 2019, Star Cement had announced buy back of the company’s shares. But, on 20th September 2019, Hon’ble Finance Minister announced that there will be no buyback tax charged on listed companies that had announced buyback offer before 5th July 2019.Since Star Cement had made public announcement on buy back of shares on 25th June, 2019, therefore, it falls under the exempted category. Hence, it is not necessary for Star Cement to pay buyback tax.

Star Cement Limited is a cement manufacturer in north east India. It installed its manufacturing plant in Lumshnong. The plant location is in Meghalaya; which was chosen strategically to ensure easy availability of high-grade limestone. Star Cement’s product range includes Ordinary Portland Cement (OPC 43-Grade) and (OPC 53-Grade) and Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC) and Anti Rust Cement (ARC) in line with evolving customer needs. Presently Star Cement is marketing super quality clinker to different grinding units located in India, Nepal & Bhutan.

On Tuesday, the stock of Star Cement opened at Rs. 104 per share and made an intraday high and low of Rs. 104 and Rs. 98 respectively on the BSE. At 11.54 am, the stock was trading at Rs. 99.25, up by 1.53 per cent.