HCC shares jump 8% after sale of subsidiary for Rs 1,323 crore

Shares of Hindustan Construction Company (HCC) jumped more than 7 percent on March 29 after it completed the sale of  its wholly owned subsidiary Baharampore-Farakka Highways to Cube Highways and Infrastructure V Pte ltd.

The HCC shares were trading at Rs 13.70 apiece, or around 7.5 percent higher than the previous close, on the BSE at 12.47pm today.

The sale of the Baharampore-Farakka Highways to Cube was completed for Rs 1,323 crore. The HCC Group will receive a total of Rs 941 crore, which includes an upfront amount of Rs 677 crore and Rs 264 crore payable by October-December this year and April-May 2024 in two tranches.

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“Additionally, as part of the agreement with Cube, HCC will be entitled to a revenue share from BFHL over the entire concession period, which is material in nature,” HCC said in a filing.

The share price of HCC has lost over 14 percent in the last one year. In the last three years, however, it has surged a whopping 260 percent.

In the December quarter last year, HCC’s net sales were at Rs 2,034.80 crore, down 23.81 percent from a year ago. HCC’s quarterly net loss was at Rs 257.85 crore in December 2022, down 500.2 percent from Rs 64.43 crore in December 2021.