Multibagger Aerospace and Defence Stock Granted Mega Project Status: Big News for This Small-Cap Stock
Let’s dive into the details of what the “Mega Project” status entails and how it stands to benefit the company.
The share price of this Small-Cap aerospace and defence company is likely to be in action on Monday after it was granted “Mega Project” status. The stock's performance has been outstanding, delivering multibagger returns of 3,039.17 per cent in just three years. Over the past year, the stock has gained 84.5 per cent. Let’s dive into the details of what the “Mega Project” status entails and how it stands to benefit the company.
Nibe Limited has reached a significant milestone with its proposed manufacturing facility at MIDC, Shirdi, in Ahmednagar, Maharashtra. The company announced that it has been granted "Mega Project" status under the Package Scheme of Incentives Policy, 2019, by the Department of Industries, Energy, Labour, and Mining, Government of Maharashtra.
What is the Project About?
Nibe Limited plans to establish a state-of-the-art facility for manufacturing a wide range of aircraft components, including vertical stabilisers, jet engines, cockpits, and fuselage (body), among others. Initially announced in September 2024, the project was estimated at Rs 1,200 crore and included a provision for 300 acres of land by MIDC, Shirdi. In January 2025, the revised estimated cost was pegged at Rs 800 crore, reflecting updated plans.
This new status comes with several benefits designed to promote industrial development:
- Industrial Promotion Subsidy: The company will receive subsidies equal to 100 per cent of its eligible investments made within five years starting April 1, 2025, or up to 100 per cent of the SGST payable in the same period, whichever is less.
- Power Tariff Subsidy: Financial support for power tariffs will be provided to the company.
- Cost Reimbursements: The company will be reimbursed or exempted from various costs, including stamp duty, electricity expenses, and contributions to employee provident funds.
Next Step
While the recognition as a "Mega Project" offers several benefits, it comes with certain conditions and regulatory approvals that Nibe Limited will need to meet. These approvals are critical for the company to fully realize the benefits offered under the scheme.
Disclaimer: The article is for informational purposes only and not investment advice.