Moneycontrol Bureau
Shares of Hindustan Construction Company (HCC) climbed 6 percent intraday Thursday. The company has sought approval from its shareholders to issue securities for an aggregate amount not exceeding Rs 1,000 crore or its equivalent in any foreign currency.
"The board shall issue securities to meet long term working capital and capital expenditure requirements of the company and its subsidiaries, joint ventures and affiliates, including investment in subsidiaries (including overseas subsidiaries), joint ventures and affiliates besides strengthening the balance sheet of the company including repayment of debt, tap acquisition opportunities, usage for business ventures/ projects and other general corporate purposes," said the company reasoned in its annual report 2014-15.
It added that the special resolution is enabling the board members to create, issue, offer and allot equity shares, GDRs, ADRs, foreign currency convertible bonds, convertible debentures and such other securities at such price as may be deemed appropriate by the board at its absolute discretion.
Meanwhile, Ajit Gulabchand, Chairman and Managing Director of HCC (in its letter to shareholders) said he is cautiously optimistic about company’s prospects in FY16.
"I am cautious of the rate of growth of the topline and the number of new and significant projects that will be tendered. And I am optimistic of the fact that we shall never again take our eyes off the fundamentals of performance — that is, maximising productivity with an unwavering attention to controlling costs," he explained.
For the year-ended March 2015, the Mumbai-based construction company reported a profit of Rs 81.65 crore against Rs 80.64 crore in previous year. Revenue increased marginally to Rs 4,281.78 crore from Rs 4,256.11 crore during the same period.
In April, the company successfully raised Rs 400 crore through a qualified institutional placement (QIP), which was oversubscribed. The proceeds from this QIP has helped balance cash flow and provided necessary working capital for future business, Gulabchand said.
Hindustan Construction Company At 12:47 hours IST, the scrip of Hindustan Construction Company was quoting at Rs 25.60, up Rs 1.25, or 5.13 percent on the Bombay Stock Exchange.
Posted by Sunil Shankar Matkar
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