Hindustan Construction Company shares rallied 8 percent intraday March 26 after the board approved monetisation of specified awards and claims.
The stock was quoting at Rs 15.34, up Rs 1.00, or 6.97 percent on the BSE, at 1424 hours IST.
HCC, on March 26, signed terms with a consortium of investors led by BlackRock, which will seek to monetise an identified pool of 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 March 26, 2019, and is subject to requisite approvals.
Under the terms of the transaction, HCC said it would transfer its beneficial interest and rights in an identified portfolio of arbitration awards and claims to a special purpose vehicle (SPV) controlled by a consortium of investors, including BlackRock.
HCC said it will utilise the amount to prepay debt of Rs 1,250 crore, including its entire term loan of Rs 942 crore that is due in the next 3 years and Rs 308 crore of OCDs.
The balance Rs 500 crore will be made available to fund working capital and business growth, it added.
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