HCC to get Rs 131cr from Goldman, Morgan

The board of directors of Hindustan Construction Company (HCC) today approved a proposal to raise 130.75 crore.

According to a release issued to the BSE today, the board approved a proposal to issue 29,05,540 equity shares of Rs 10/- each for cash at a premium of Rs 440 per share - i.e. an issue price of Rs 450/- per equity share - to raise Rs 130.75 crore on a preferential basis.

"The board also approved a proposal to increase the limit for investment by FIIs in the company up to 49% of the paid-up equity share capital," the release added.

Under the preferential allotment, Morgan Stanley India Investment Fund Inc would be allotted 10,88,880 shares at a premium of Rs 440 per share totalling Rs 48.99 crore.

While Morgan Stanley Mutual Fund would be alloted 8,66,660 shares totalling Rs 38.99 crore, Goldman Sachs Investments would pick up 9.50 lakh shares worth Rs 42.75 crore.

The company has called an EGM on March 31, 2005 to get shareholder approval for the preferential issue and hike in FII limit, the release said.