HCC shares jump 5% on executing ₹3,364-cr corporate guarantee to its unit

HCC shares rose 5 per cent after it said that it executed a ₹3,364 crore reduction in corporate guarantee to its associate company Prolific Resolution Pvt. Ltd.

Shares of Hindustan Construction Company Ltd. (HCC) rose nearly 5 per cent on Thursday after it said that it executed a ₹3,364 crore reduction in corporate guarantee to its associate company Prolific Resolution Pvt. Ltd. 

 

The civil construction company's stock rose as much as 4.99 per cent during the day to ₹19.13 per share. The stock pared gains to trade 3.35 per cent higher at ₹18.8 apiece, compared to a 0.11 per cent advance in Nifty 50 as of 11:03 AM. 

 

Shares of the company have fallen 6.8 per cent so far this month and currently trade 1.3 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 41 per cent this year, compared to a 9 per cent advance in the benchmark Nifty 50. Hindustan Construction has a market capitalisation of ₹4,956.03 crore.  FOLLOW STOCK MARKET UPDATES TODAY LIVE

HCC cuts guarantee exposure on associate firm’s debt 

Hindustan Construction said it has significantly reduced its exposure to debt arising from a corporate guarantee issued for loan facilities availed by Prolific Resolution Pvt. Ltd. (PRPL), its associate company.

 

HCC had earlier transferred about ₹2,854 crore of debt and ₹6,508 crore of awards and claims to PRPL while retaining a 49 per cent equity stake. The company had also provided a 100 per cent corporate guarantee on PRPL’s debt. With accrued interest, PRPL’s total debt stands at around ₹3,935 crore, while awards and claims total ₹6,325 crore.

 

Following approvals from PRPL’s lenders, its board and other stakeholders, HCC’s guarantee obligation has now been reduced to ₹571 crore, equivalent to 20 per cent of the principal amount transferred.

 

The company said the move is part of its broader strategy to de-leverage its balance sheet, strengthen its investment-grade rating, and improve its ability to access capital markets as it scales operations.  ALSO READ | Swiggy share price rises 3% amid large trade; check all details here 

Earlier this month, the company’s board approved raising ₹1,000 crore by way of a rights Issue in a meeting on November 26, 2025. The company has decided to keep the total number of rights equity shares at 79,99,91,900 for an amount aggregating to ₹999.99 crore. 

 

Hindustan Construction Company is the flagship company of Hindustan Construction Company Group (HCC Group) and is involved in engineering and construction of infrastructure projects such as dams, tunnels, bridges, hydro, nuclear and thermal power plants, expressways and roads, marine works, water supply, irrigation systems and industrial buildings across the country.