Mumbai-based engineering and construction firm Hindustan Construction Company Ltd (HCC) has received the board approval to raise up to Rs 750 crore ($124.5 million) through issue of equity shares in a qualified institutions placement (QIP), as per a stock market disclosure.
The firm will use the money to repay debt and get HCC out of the CDR cell ahead of schedule.
HCC, a part of Rs 9,668 crore HCC Group, is engaged in construction, real estate and infrastructure development. The firm develops projects that span across such diverse segments as transportation, power, marine projects, oil and gas pipeline constructions, irrigation and water supply, utilities and urban infrastructure.
One of its subsidiaries Lavasa Corporation Ltd has just filed a draft prospectus with the capital market regulator to raise Rs 750 crore in an initial public offering (IPO).
For the quarter ended June 30, 2014, HCC reported a 40.92 per cent increase in net profit to Rs 27.10 crore compared with last year's Rs 19.23 crore in the same quarter. Its revenues declined to Rs 1,043 crore against Rs 1,149.5 crore in Q1 of last year.
Shares of HCC closed at Rs 39.65 each, up 3.26 per cent on BSE, in a weak Mumbai market on Thursday.
(Edited by Joby Puthuparampil Johnson)