The government waives dues totaling ₹1,351 crores, causing small-cap stocks under ₹50 to reach a 20% high
The government waives dues totaling ₹1,351 crore, causing small-cap stocks under ₹50 to reach a 20% high. Hindustan Organic Chemicals (HOCL), a state-owned company, saw a sharp rally in early morning trade on Monday, reaching the upper circuit limit of 20%. The Government of India waived dues amounting to ₹1,351.38, which is expected to impact its financials positively.
The small-cap company, with a market capitalization of only ₹215crorese, said in an exchange filing late Friday night, “Ministry of Chemicals & Fertilizers, Government of India vide Order No.1600/9/2024-IFD dated 21.03.2025 got by us today late evening informed that the Parliament has approved removing out Government of India dues of HOCL amounting to Rs.1,351.38 crore as on 30.09.2024.” The dues include a government loan, internet access for the loan, preference shares, interest or penalty on the preference shares, and punitive interest on the GoI. According to the business, the write-off is likely to have a favorable impact on HOCL’s finances.
HOCL Share Price Trend:
Following the news, shares of the public sector company (PSU) soared 20% to hit its upper price range on the BSE at ₹32.11 apiece, compared to its previous closing price of ₹26.76. Despite today’s increase, the Hindustan Organic Chemicals share price has performed poorly from a year earlier, losing up to 24%, while the BSE barometer Sensex has increased by 7%. The stock reached a 52-week high of ₹62.70 in July last year and a low of ₹22.36 on March 3, 2025, on the BSE. In the December 2024 quarter, the company’s profit dropped to ₹78.99 crore, while sales decreased by 11.6% to ₹173.15 crore.
