HCC surges on securing Rs 217 crore arbitration award

The stock moved higher by 6% to Rs 31.40 on the National Stock Exchange.

Shares of Hindustan Construction Company (HCC) has moved higher by 6% at Rs 31.40 after the company said it has secured an arbitration award of Rs 217.18 crore for the extension of time (EOT) cost claim in Lucknow-Muzaffarpur National Highway Project – package IV.

Of the total award, Rs 135.15 crore is the principal amount and Rs 82.03 crore is the interest component, HCC said in a press release.

This is the sixth arbitration decision given in HCC’s favour, for claims from National Highway Authority of India (NHAI) in FY14-15. In the current financial year, the total arbitration awards received by HCC in its favour for its various projects are Rs 773 crore, it added.

HCC said, at present, the company is lowest bidder in contracts worth Rs 4,733 crore for which the final orders are yet to be received.

The order-book position as of December 2014 stands at Rs 14,307 crore, it added.

The stock opened at Rs 29.90 and touched a high of Rs 31.45 on the NSE. The counter has seen huge trading volumes with a combined 5.35 million shares changed hands till 1034 hours on the NSE and BSE.