Shares of Hindustan Construction Company ended with over 8 per cent gain today after its realty arm Lavasa Corporation got a go-ahead from market regulator Sebi for raising Rs 750 crore through an IPO.
After surging 12.17 per cent to Rs 38.25 in intra-day trade on the BSE, HCC shares finally ended at Rs 36.75, up 7.77 per cent.
At the NSE, it settled with a gain of 8.49 per cent at Rs 37.05.
Tracking the gain in the stock, the company's market value moved up by Rs 171.41 crore to Rs 2,373.41 crore.
On the volume front, 49.74 lakh shares of the company were traded at the BSE, while over one crore shares changed hands at the NSE during the day.
Lavasa had filed its draft red herring prospectus with the Securities and Exchange Board of India in July for the proposed initial public offer.
Sebi issued its final observations on the draft offer documents on November 7. Sebi's observations are necessary for the companies to launch any public offer.
The company, which is developing a large township (hill city) in 10,000 hectares of land in 'Lavasa' near Pune, is making a second attempt to raise money through IPO.
In November 2010, Lavasa had got the Sebi clearance for an IPO to raise up to Rs 2,000 crore, but bad market conditions forced the company to scrap the plan at that time.
As per draft documents, Lavasa plans to launch an IPO of its equity shares of Rs 10 each aggregating to Rs 750 crore. The proceeds from the current issue would be used to fund the company's growth.
The HCC group, which has 68.72 per cent stake in Lavasa, had said that proposed public issue is subject to receipt of requisite regulatory approvals, market conditions and other considerations.
