Shares of Hindustan Construction Company (HCC) today surged nearly 20 per cent after the infrastructure major said it will receive arbitral award payment of around Rs 2,000 crore from NHPC and NHAI Ltd.
The shares of the company opened on a bullish note at Rs 37.50, then jumped 19.88 per cent to touch an early high of Rs 41 on BSE.
Similar movement was seen on NSE as well, where the stock opened at Rs 37.55, then surged 19.94 per cent to an early high of Rs 40.90.
"NITI Aayog has given the SOP (Standard Operating Procedures) for release of payment for timely implementation. HCC has been asked to reconcile the award amount within 7 days and thereafter open escrow account and submit bank guarantees (BGs) within 30 days for recovering the amount.
"This communication clears the way for HCC for receiving close to Rs 2,000 crore within 4 to 6 weeks," a company release said yesterday.
The communication came in the backdrop of the government setting into motion the process to release 75 per cent of arbitration amounts against margin free guarantee in situations where awards have been given but have been contested by the concerned authorities.
The uptick in the counter assumes significance as the broader market was trading in the negative territory.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)