Infrastructure major Hindustan Construction Company (HCC) today approved the issuance of equity shares as well as optionally convertible debentures (OCDs) worth about Rs 2,000 crore to the lenders, under the scheme for sustainable structuring of stressed assets.
"Board of directors, in meeting held today, has approved issuance of 25,19,92,670 equity shares of the company, of face value Re 1 each, representing 24.44 per cent of expanded share capital of the company and such optionally OCDs of face value Rs 1,000 each not exceeding Rs 2,000 crore on preferential basis, to the lenders," HCC said in a statement.
HCC is the first company to get its debt restructured under the 'Sustainable Structuring of Stressed Assets (S4A)' scheme.
The HCC board has decided to convene an extraordinary general meeting of the company on January 5, 2017 for seeking shareholders' approval for the issuance.
Besides, the board has also approved Rs 2,100 crore Bank Guarantee (BG) limits for release of arbitral award amount as per Cabinet Committee on Economic Affairs (CCEA) approval for revival of the construction sector directing government agencies to pay "75 per cent of the arbitral award amount against margin free bank guarantee".
"HCC has recently received communication from government agencies to submit BG and Escrow Account details for release of 75 per cent of arbitral awards," the company said.
HCC has arbitration awards for Rs 3,427 crore as of September 30, 2016. Further claims worth around Rs 4,173 crore are in arbitration process.
During the quarter its subsidiary Steiner AG reported
a revenue of Rs 1,585.9 crore against Rs 938.2 crore in Q3 FY16. The company bagged orders worth Rs 5,648.3 crore in past 9 months and has secured orders for more than Rs 3,056.4 crore, where the contracts are yet to be signed.
HCC Concessions commenced the commercial operations of Farakka-Raiganj Highways during the quarter.
Bahrampore-Farakka Highways witnessed a steady PCU growth of 7 per cent y-o-y, which is lower than the 15 per cent achieved in the first two quarters. This is partially as a result of demonetisation but largely because of repair and rehabilitation of a bridge on NH60 connecting the quarry area to NH34 at Moregram junction, the company said.
Lavasa Corporation's Lavasa city witnessed tourist footfall of 1.81 lakhs in the third quarter of FY17.
