HCC share price locked in upper circuit on getting Rs 1,259 crore from NHAI

Hindustan Construction Company

Hindustan Construction Company. (HCC) share price was locked in a 5 percent upper circuit after the company said that HCC Group was to receive Rs 1,259 crore from NHAI BOT conciliations.

There were pending buy orders of 751,576 shares, with no sellers available.

HCC Concessions Ltd (HCON), the infrastructure development arm of HCC Group, concluded its conciliation with NHAI for all disputes concerning Baharampore-Farakka Highways Ltd (BFHL) and Farakka-Raiganj Highways Ltd (FRHL), the company said in a release to the exchanges.

The SPVs entered into settlement agreements with NHAI for a comprehensive closure of all outstanding disputes and claims between the parties, it added.

BFHL will receive Rs 405 crore while FRHL will receive Rs 854 crore from the NHAI; FRHL will release the settlement proceeds and further sums to HCC Group per the existing contractual understanding with FRHL’s buyer, Cube Highways & Infrastructure II Pte.

Besides part use of funds for completing the NHAI project and offering an exit to the Xander Group, which holds a 14.55 percent share in HCON, a substantial portion of funds will be received by HCC as a settlement of their cost claims, the company added.

Arjun Dhawan, HCC Group’s CEO, in a statement said “Today, HCC settled disputes pertaining to its largest BOT projects, and we are thankful for the opportunity provided by the conciliation mechanism encouraged by MoRTH & NHAI.”

The proceeds of conciliation shall be used to expedite the completion of key projects and to strengthen HCC’s participation in future works of nation-building, he added.

At 1209 hours, Hindustan Construction Company was quoting at Rs 8.07, up Rs 0.38, or 4.94 percent on the BSE.

The share touched a 52-week high of Rs 10.87 on December 16, 2020 and a 52-week low of Rs 3.81 on March 31, 2020. It is trading 25.76 percent below its 52-week high and 111.81 percent above its 52-week low.

News Source:- Moneycontrol

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