HCC jumps 20 pc on bourses; m-cap improves by Rs 529 cr

Shares of Hindustan Construction
Company (HCC) today settled with gains of 20 per cent,
following which the market capitalisation of the company
swelled by Rs 529 crore.
The infrastructure major on November 30 had said that it
will receive arbitral award payment of around Rs 2,000 crore
from NHPC and NHAI Ltd.
Following this, the stock witnessed heavy buying in the
counter and at the end of today’s trading session HCC was
trading at Rs 41, up 20 per cent on the BSE. Accordingly, the
market capitalisation of the company improved by Rs 529.55
crore to Rs 3,194.55 crore.
On the NSE, the stock settled at Rs 40.90, up 19.94 per
cent.
“NITI Aayog has given the SOP (Standard Operating
Procedures) for release of payment for timely implementation.
HCC has been asked to reconcile the award amount within 7 days
and thereafter open escrow account and submit bank guarantees
(BGs) within 30 days for recovering the amount.
“This communication clears the way for HCC for receiving
close to Rs 2,000 crore within 4 to 6 weeks,” a company
statement said yesterday.
The communication came agianst the backdrop of the
government setting into motion the process to release 75 per
cent of arbitration amounts against margin free guarantee in
situations where awards have been given but have been
contested by the concerned authorities