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HCC falls 15% on reports of subsidiary Lavasa Corp heading for bankruptcy

The stock hit 18-month low of Rs 24.60, down 15%, extending its Wednesday's 5% decline on the BSE

SI Reporter  |  Mumbai 

Lavasa remains a holiday destination for now

Hindustan Construction Company (HCC) hit 18-month low of Rs 24.60, down 15%, extending its Wednesday’s 5% decline on the BSE after the media report suggested that the company’s subsidiary Corporation headed for Corporation Ltd (LCL), a unit of that's developing it, is considering approaching the National Company Law Tribunal (NCLT) owing to challenges faced in raising money for project completion, the DNA report suggested. "The management is planning to declare and is likely to approach the by the end of this month i.e, March 2018.

The funds-starved company is finding it difficult to manage day-to-day operations and has started resorting to selling non-core equipment to raise money and meet immediate expenses,” the report suggested quoting sources. The BSE said the exchange has sought clarification from Hindustan Construction Company Ltd on March 22, 2018 with reference to appeared in DNA Money dated March 21, 2018 quoting ""subsidiary Corp headed for " In this regard, the National Stock Exchange (NSE) have advised the Company to provide clarification/confirmation on the item in detail including whether such negotiations were taking place and whether you/company are aware of any information that has not been announced to the Exchanges which could explain the aforesaid movement in the trading. The response from the company is awaited. At 11:03 am; the stock was trading 11% lower at Rs 25.65, as compared to 0.23% rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than five-fold with a combined 58.23 million shares changed hands on the NSE and BSE.

First Published: Thu, March 22 2018. 11:07 IST
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