 "HCC to receive arbitral award of Rs 2000 crore; stock up over 10%")
Hindustan Construction Company (HCC) has rallied 15% to Rs 39.50 on the BSE in intra-day trade after the company said it will receive Rs 2,000 crore as arbitration award payment from its projects with National Hydroelectric Power Corporation Ltd (NHPC) and National Highways Authority of India (NHAI) within 4 to 6 weeks.
“The company has received communication from NHAI and NHPC regarding arbitral award payment,” HCC said in a release.
“Niti Aayog has given Standard Operating Procedures for release of payment for timely implementation. HCC has been asked to reconcile the award amount within seven days and thereafter open escrow account and submit bank guarantees within 30 days for recovering the amount,” it added.
As on September 30, 2016, the company has arbitration awards for a total of Rs 3,427 crore. Additional claims worth around Rs 4,173 crore are in various stages of arbitration process.
“About 70% of these cases were at the initial stage of arbitration process and the company has already given consent to transfer these cases under new arbitration act, which mandates the decision within 12 months,” HCC said.
At 10:09 am; the stock was up 11% at Rs 38.10 on the BSE. The trading volumes on the counter jumped nearly three-fold with a combined 14.59 million shares changed hands on the BSE and NSE so far.
“The company has received communication from NHAI and NHPC regarding arbitral award payment,” HCC said in a release.
“Niti Aayog has given Standard Operating Procedures for release of payment for timely implementation. HCC has been asked to reconcile the award amount within seven days and thereafter open escrow account and submit bank guarantees within 30 days for recovering the amount,” it added.
As on September 30, 2016, the company has arbitration awards for a total of Rs 3,427 crore. Additional claims worth around Rs 4,173 crore are in various stages of arbitration process.
“About 70% of these cases were at the initial stage of arbitration process and the company has already given consent to transfer these cases under new arbitration act, which mandates the decision within 12 months,” HCC said.
At 10:09 am; the stock was up 11% at Rs 38.10 on the BSE. The trading volumes on the counter jumped nearly three-fold with a combined 14.59 million shares changed hands on the BSE and NSE so far.