H.G. Infra Shares Rally on Tax Relief
Shares of H.G. Infra Engineering Ltd. saw a notable increase on Tuesday, rising by as much as 5%, following an announcement that the Karnataka tax authority has withdrawn a substantial ₹94 crore tax demand. The demand, which encompassed tax, interest, and penalties, was completely dropped by the Deputy Commissioner of Commercial Taxes, Bengaluru.
Background to the Tax Demand
The situation originated from a show-cause notice issued by the Deputy Commissioner of Commercial Taxes, Bengaluru, on September 16, 2026. This notice outlined the initial ₹94 crore demand. H.G. Infra Engineering subsequently submitted a comprehensive reply to the tax authority, presenting its detailed position on the matter.
Resolution and Market Impact
Based on the company's reply, the Deputy Commissioner of Commercial Taxes issued an order on October 5, 2026. This order formally dropped the entire ₹94 crore demand, concluding the show-cause notice proceedings with a 'NIL' demand for tax, interest, and penalties. H.G. Infra Engineering disclosed this significant development on October 6, 2026, in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The positive news resonated with investors, driving H.G. Infra's shares to a high of ₹423.70, marking a 4.91% gain from its previous close of ₹403.85.
About H.G. Infra Engineering
H.G. Infra Engineering Ltd. (HGIEL) is an established infrastructure development and engineering, procurement, and construction (EPC) firm. Founded in 2003, the company is headquartered in Jaipur, Rajasthan, and specializes in various infrastructure projects.