The Board of Hindustan Construction Company approved the appointment of Samuel Joseph, nominee of Exim Bank, as nominee director on the Board of the Company, in place of Harsha Bangari.

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Hindustan Construction Company signed terms with a consortium of investors led by BlackRock, who will seek to monetize an identified poolof arbitration awards and claims for a consideration of Rs.1,750 crore. The proposed transaction was approved by the Board of Directors of the Company at its meeting held on 26 March 2019, and is subject to requisite approvals.

Under the terms of the transaction, HCC will transfer its beneficial interest and rights in an identified portfolio of arbitration awards & claims to a special purpose vehicle (SPV) controlled by a consortium of investors, including BlackRock. HCC will receive aconsideration of Rs.1,750 crore from the SPV, which will be utilised to prepay debt ofRs.1,250 crore, including its entire term loan of Rs.942 crore which is due in the next 3 yearsand Rs.308 crore of OCDs. The balance Rs.500 crore will be made available to fund workingcapital and business growth. Consequently, the balance sheet of HCC would standsubstantially deleveraged, with debt servicing over the next 4 years being limited to itsworking capital facilities.

As a result of the transaction, the Company expects approximately Rs.2,000 crore ofworking capital assets, being a combination of adjudicated awards and lodged claims, toleave its balance sheet, which will result in a partial write down of net worth. The preciseamount of write-down will be ascertained in HCC's year-end accounts and is not expected toimpact the Company's business prospects materially. HCC will continue to retain a materialamount of awards and claims with the transaction being limited only to an identified pool ofawards and claims. The agreement also envisions a claw back of value by HCC from theSPV in the event that the recovery of Awards and Claims transferred to the SPV exceedscertain thresholds.

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SJVN Ltd, NHPC Ltd, JSW Energy Ltd and Avanti Feeds Ltd are among the other gainers in the BSE's 'A' group today, 07 March 2019.

Hindustan Construction Company Ltd surged 10.59% to Rs 14.52 at 11:48 IST. The stock was the biggest gainer in the BSE's 'A' group. On the BSE, 13.31 lakh shares were traded on the counter so far as against the average daily volumes of 2.66 lakh shares in the past one month.

SJVN Ltd soared 6.82% to Rs 25.85. The stock was the second biggest gainer in 'A' group. On the BSE, 5.74 lakh shares were traded on the counter so far as against the average daily volumes of 81077 shares in the past one month.

NHPC Ltd spiked 6.28% to Rs 25.4. The stock was the third biggest gainer in 'A' group. On the BSE, 13.89 lakh shares were traded on the counter so far as against the average daily volumes of 3.96 lakh shares in the past one month.

JSW Energy Ltd exploded 5.62% to Rs 72.35. The stock was the fourth biggest gainer in 'A' group. On the BSE, 4.22 lakh shares were traded on the counter so far as against the average daily volumes of 51112 shares in the past one month.

Avanti Feeds Ltd rose 5.57% to Rs 406.65. The stock was the fifth biggest gainer in 'A' group. On the BSE, 1.55 lakh shares were traded on the counter so far as against the average daily volumes of 38683 shares in the past one month.

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Net profit of Hindustan Construction Company declined 68.35% to Rs 9.91 crore in the quarter ended December 2018 as against Rs 31.31 crore during the previous quarter ended December 2017. Sales declined 10.49% to Rs 1101.81 crore in the quarter ended December 2018 as against Rs 1230.93 crore during the previous quarter ended December 2017.

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