ALSO READHCC jumps 20% on arbitral award of Rs 2,000 cr from NHPC, NHAI HCC shares jump 8% on Rs 182-cr order HCC shares soar over 10.5% as JV wins Rs 2,523 cr contract HCC shares jump 5.5% after Rs 368-cr order win Board of Hindustan Construction Company to consider preferential issue of shares and debentures
Shares of Hindustan Construction Company (HCC) today settled with gains of 20 per cent, following which the market capitalisation of the company swelled by Rs 529 crore.
The infrastructure major on November 30 had said that it will receive arbitral award payment of around Rs 2,000 crore from NHPC and NHAI Ltd.
Following this, the stock witnessed heavy buying in the counter and at the end of today's trading session HCC was trading at Rs 41, up 20 per cent on the BSE. Accordingly, the market capitalisation of the company improved by Rs 529.55 crore to Rs 3,194.55 crore.
On the NSE, the stock settled at Rs 40.90, up 19.94 per cent.
"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 statement said yesterday.
The communication came agianst 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.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)