Hindustan Construction Corp stock slips 25% as auditors red-flag Lavasa

HCC owns 68.72 per cent in Lavasa through its wholly-owned subsidiary HCC Real Estate Limited (HREL) and Hincon Finance Ltd (HFL)

The stock of Hindustan Construction Corporation (HCC) slipped 25 per cent, its biggest fall in a day, as auditors of its step-down subsidiary Lavasa Corporation raised doubts over the latter’s ability to continue as a going concern. Lavasa has defaulted on repayments to lenders as well as debenture holders.

Auditors Walker Chandiok & Co LLP said Lavasa posted a net loss of Rs 6.82 billion for the year ended March 2018. The current liabilities exceed its current assets by Rs 23.89 billion, according to a filing to the BSE. The HCC stock closed at Rs 17.55 a share, down 24.84