Havells India shares hit a day high of Rs 1,109.20 on 6 November after Uttar Pradesh offered incentives for its Rs 879 crore Noida R&D centre.

The company told exchanges on 6 November that it received a Letter of Comfort, dated 5 November, from Invest UP of the Uttar Pradesh government.

In simple terms, it is a formal letter from the state spelling out the support Havells may receive.

The support is meant for a research and development centre in Sector 161, Noida.

Havells plans to invest Rs 879 crore in it over the next few years. The centre falls under the state’s Global Capability Centres Policy 2024.

The main perk is a capital subsidy. The state will pay 25% of the eligible investment, capped at Rs 25 crore a year.

Payments come in seven equal yearly instalments once the centre starts commercial operations. A 25% share of Rs 879 crore would be about Rs 220 crore.

The yearly cap brings the total to Rs 175 crore over seven years, roughly 20% of the planned spend.

That is our own estimate, and the final amount depends on the investment the state verifies at each claim.

The policy also offers help with running costs, salaries and hiring, subject to conditions. The filing gave no date for when operations will begin.

Reports citing a state government statement say Uttar Pradesh approved letters of comfort for four such centres in Gautam Buddh Nagar, worth Rs 1,709.84 crore in all.

Havells’ plan is the largest of the four. NSE’s event calendar listed 22 October as the date for Havells’ board to approve quarterly results.

The company’s latest dividend was Rs 6 a share, with an ex-date of 22 May.

Havells opened at Rs 1,068.70, slipped to a low of Rs 1,048.20 and then climbed through the day.

Over the past week it has gained 9.27%, though it is still down 21.85% this year.

At 15:05 pm, Havells India traded at Rs 1,108 on the NSE, up Rs 39.90 or 3.74% from Thursday’s close of Rs 1,068.10. The Nifty 50 was up 1.31% at the time.

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