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HCC jumps on buzz Lavasa gets IPO approval

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Capital Market
Last Updated : Nov 11 2014 | 11:02 AM IST

Hindustan Construction Company rose 9.68% to Rs 37.40 at 10:34 IST on BSE on reports the company's unit, Lavasa Corporation, received market regulator's approval for an initial public offer.

Meanwhile, the BSE Sensex was up 114.46 points, or 0.41%, to 27,989.19.

On BSE, so far 26.34 lakh shares were traded in the counter, compared with an average volume of 11.38 lakh shares in the past one quarter.

The stock hit a high of Rs 38.25 and a low of Rs 36.30 so far during the day. The stock hit a 52-week high of Rs 49 on 1 July 2014. The stock hit a 52-week low of Rs 11.45 on 26 November 2013.

The stock had outperformed the market over the past one month till 10 November 2014, rising 9.82% compared with 6% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 3.67% as against Sensex's 10.05% rise.

The small-cap company has an equity capital of Rs 64.58 crore. Face value per share is Re 1.

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According to reports, Lavasa Corporation, the realty arm of Hindustan Construction Company (HCC), has received market regulator the Securities and Exchange Board of India (Sebi)'s approval for raising Rs 750 crore through an initial public offer (IPO).

On 1 July 2014, Lavasa Corporation had filed its draft red herring prospectus with Sebi in order to undertake an initial public offering (IPO) of its equity shares of Rs 10 each aggregating to Rs 750 crore. The IPO is subject to receipt of requisite regulatory approvals, market conditions and other considerations, HCC said.

This is the second time Lavasa Corporation is considering an IPO. In 2010, Lavasa had planned to raise Rs 2000 crore from the primary market, which was abandoned due to the weakness in the market.

HCC holds a 68.7% stake in Lavasa, which is developing several hill townships near Pune, Maharashtra.

Net profit of HCC declined 78.61% to Rs 6.76 crore on 4.71% rise in net sales to Rs 931.59 crore in Q2 September 2014 over Q2 September 2013.

HCC is an infrastructure developer. It has executed a majority of India's landmark infrastructure projects, having constructed 25% of India's hydel power generation and over 50% of India's nuclear power generation capacities, over 3500 lane km of expressways and highways, more than 288 km of complex tunneling and over 350 bridges.

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First Published: Nov 11 2014 | 10:35 AM IST

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