HCC to seek shareholders nod for conversion of loan into equity; stock hits 52-week high

The stock surged 11% to Rs 43.50, also its 52-week high on the BSE in intra-day trade

Hindustan Construction Company (HCC) surged 11% to Rs 43.50, also its 52-week high on the BSE in intra-day trade, after the company said it will next month seek shareholders' nod for conversion of loan into equity shares or optionally convertible debentures pursuant to implementation of the Reserve Bank of India’s (RBI) scheme for sustainable structuring of stressed assets.

“The Extra Ordinary General Meeting (EGM) of the company will be held on January 05, 2017 to take shareholders approval for conversion of loan by lenders into equity shares/Optionally convertible debentures (OCDs) of the company pursuant to implementation of the Reserve Bank of India S4A Scheme for the Company,” HCC said in an EGM notice.

The construction & engineering major HCC had earlier in the month approved the issuance of equity shares as well as OCDs worth about Rs 2,000 crore to the lenders, under the scheme for sustainable structuring of stressed assets. HCC is the first company to get its debt restructured under the Sustainable Structuring of Stressed Assets (S4A) scheme.

At 09:56 am; the stock was up 9% at Rs 42.60 on the BSE, as compared to 0.16% decline in the S&P BSE Sensex. The counter has seen a huge trading actions with a combined 23.63 million shares changed hands in first 45 minutes of trade on the BSE and NSE.