May 12, 2021

HCC Group: HCC Group to obtain Rs 1,259 crore from NHAI on dispute decision; shares rise 5%

HCC Group’s infrastructure growth arm HCC Concessions has acquired Rs 1,259 crore after because it settled disputes for 2 initiatives with the Nationwide Highways Authority of India (NHAI), the corporate mentioned in an announcement on Wednesday.

HCC’s particular goal autos (SPVs) Baharampore-Farakka Highways and Farakka-Raiganj Highways entered into settlement agreements with NHAI for a complete closure of all excellent disputes and claims between the events.

“The proceeds of conciliation shall be used to expedite completion of our key initiatives and to strengthen HCC’s participation in future works of nation-building,” Arjun Dhawan, HCC Group’s chief govt officer, was quoted as saying within the assertion.

Shares of HCC had been locked in a 5 per cent higher circuit at Rs 8.07 on Wednesday, pushed by the information.

The Baharampore-Farakka Highways mission will obtain Rs 405 crore, whereas Farakka-Raiganj Highways will get Rs 854 crore from NHAI.

“Moreover half use of funds for NHAI mission completion and an exit to the Xander Group, who maintain a 14.55 per cent share in HCON, a considerable portion of funds will likely be acquired by HCC as a settlement of their price declare,” the assertion mentioned.

Farakka-Raiganj Highways will launch the settlement proceeds and additional sums to HCC Group, as part of an current contractual understanding with the asset’s purchaser, Dice Highways & Infrastructure II Pte. Dice will launch Rs 233 crre withheld as a part of the deal, and can share a good portion of the mission’s income for the rest of the concession’s 20 years.

The closure of the dispute concerning the Baharampore Farakka Highways will facilitate the required liquidity within the mission to speed up completion of a much-delayed bypass. This can assist HCC monetise this Rs 2,000 core-asset sooner than deliberate.