New Delhi: Shares of Hindustan Construction Company (HCC) on Thursday surged nearly 20% after the infrastructure major said it will receive arbitral award payment of around Rs2,000 crore from NHPC and NHAI Ltd.
The shares of the company opened on a bullish note at Rs37.50, then jumped 19.88% to touch an early high of Rs41 on BSE. Similar movement was seen on NSE as well, where the stock opened at Rs37.55, then surged 19.94% to an early high of Rs40.90.
NITI Aayog has given the SOP (Standard Operating Procedures) for release of payment for timely implementation. HCC has been asked to reconcile the award amount within 7 days and thereafter open escrow account and submit bank guarantees (BGs) within 30 days for recovering the amount. “This communication clears the way for HCC for receiving close to Rs2,000 crore within 4 to 6 weeks,” a company release said on Wednesday.
The communication came in the backdrop of the government setting into motion the process to release 75% of arbitration amounts against margin free guarantee in situations where awards have been given but have been contested by the concerned authorities. The uptick in the counter assumes significance as the broader market was trading in the negative territory.