Shares of Hindustan Construction Company locked at 5 percent upper circuit. This happened, soon after the announcement of its issues resolved with the National Highways Authority of India.
The special purpose vehicle acted as a mediator between the two parties to make the settlement between them. The dispute involved the two projects namely Baharampore-Farakka Highways Ltd and Farakka-Raiganj Highways Ltd.
The company will receive Rs 1,259 crore from NHAI.
NHAI will provide an amount of Rs 405 crore to BFHL and Rs 854 crore to FRHL.
As per the reports, the amount generated after the settlement contributes towards accomplishing the projects.
A part of the amount received will contribute to the development of the NHAI project and move out from Xander Group. Xander Group has a stake of 4.55% in HCON.
Also, HCC will receive a settlement amount for the cost claim.
Additionally, after the accomplishment of the FRHL project, the toll rates will move up by approximately 70 percent.
Consequently, this conciliation caused Cube to pay Rs.233 cr related to the FRHL sale by HCON.
Furthermore, Cube has to pay Rs 100 cr by 2023 with relation to traffic forecasting.
These two projects are a few of the largest Public-Private Partnership assignments.
Earlier, in 2020 FRHL sold at Rs 1508 crore to Cube Highways & Infrastructure II Pte Ltd.
As mentioned in the reports, the two projects were laid back due to other problems like land acquisition, toll operations.
The share price of HCC Ltd at 1400 hours was Rs 8.05. The intraday high was Rs 8.05 and the intraday was Rs 7.55.
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