Hindustan Construction Company stock falls 25% on Lavasa debt worries

Hindustan Construction Company's (HCC's) shares tumbled over 25 per cent on Thursday amid buzz of an auditor report regarding the debt situation of Lavasa.
 

The stock plunged 24.84 per cent to end at Rs 17.55 on the BSE. During the day, it plummeted 26.33 per cent to Rs 17.20 — a 52-week low.
 

On the National Stock Exchange, shares of the company dived 25.42 per cent to close at Rs 17.45.

The company's market valuation fell by Rs 5. billion to Rs 17.82 billion.
 

On the equity volume front, 9 million shares of the company were traded on the BSE and over 70 million shares changed hands on the NSE during the day.

 

BSE had sought clarification from the HCC earlier in the day following reports about Lavasa's networth.

"We would like to reiterate with Lavasa Corporation continues to work jointly with the consortium of lenders towards a resolution process to the satisfaction of all stakeholders," HCC said in a filing to the BSE. "In so far as the company's stock price movement is concerned, the same is market regulated and we would not like to speculate on the reasons for the decrease in the stock price on Thursday," it added.
 

"HCC and all its subsidiaries, including Lavasa Corporation, are in compliance of the regulatory requirements and all material information is disclosed as per requirements," the company said.