HCC to raise Rs 240cr via dilution of 14.5% in arm

Net profit of Hindustan Construction Company (HCC) plunged a drastic 90% to Rs 2.9 crore in the first quarter (April to June) of fiscal year 2012. In Q1FY11, it's PAT stood at Rs 28.3 crore.

This, the management said, was on the back of considerable slowdown in infrastructure projects. "And, this was an aftermath of delay in government decisions and environmental nod," its chairman and managing director Ajit Gulabchand and chief financial officer Praveen Sood told the press. Going forward, the construction major plans to dilute 14.5% stake in its subsidiary for Rs 240 crore. "The board has approved raising these funds," the duo pointed out. At 13.45 pm the share was quoting at Rs 31.40, down Rs 1.05 per share.