HCC’s shares jump nearly 20% on completing debt resolution plan
Shares of construction firm Hindustan Construction Company (HCC) went up by 20 per cent on Tuesday after the company hived off part of its debt and arbitration claims to a special purpose vehicle in which it will hold 49 per cent stake.
The company assigned Rs 2,854.4 crore of bank debt, along with beneficial economic interest in arbitration awards and claims of Rs 6,508 crore to Prolific Resolution Private, a wholly owned subsidiary of the company.
Reacting to the news, HCC shares closed at Rs 14.66 a share, up 20 per cent. According to the plan, the SPV will include an external investor, Jadeja Investment Management Private, controlling 51 per cent stake, and HCC will hold the rest of the shares in the SPV.
