The construction company’s shares surged 7 percent after its subsidiary entered into a share purchase agreement with Demathieu Bard to sell its entire stake in Steiner Construction SA, a step-down material subsidiary of the company.
With a market capitalisation of Rs. 4,492 crores, the shares of Hindustan Construction Company Ltd started Tuesday’s trading session positively at Rs. 31 compared to its previous close of Rs. 29.70. The shares hit a high of Rs. 32.40, gaining around 7 percent, which is also recorded as the company’s fresh 52-week high. Currently, the shares are trading at Rs. 31.40 apiece.
Such a bullish movement was observed after the company in an exchange filing mentioned that its subsidiary company Steiner AG, Switzerland, has entered into a share purchase agreement worth Rs. 928 crores with Demathieu Bard, a company headquartered in France, for divestment of its entire stake in Steiner Construction SA, Switzerland, a step-down material subsidiary of the company. The agreement will be completed by December end or the beginning of next year.
In addition, HCC Infrastructure Company, a subsidiary of the company, received Rs. 110 crores from Cube Highways and Infrastructure V Pte Ltd as earn-out money, for a stake sale in Baharampore-Farakka Highways (BFHL).
The revenue marginally decreased by 4 percent from Rs. 1,926 crores in the June quarter to Rs. 1,832 crores in the September quarter. Furthermore, the net profits showcased a transition from a profit of Rs. 52.73 crores to a loss of Rs. 2.79 crores during the same timeframe.
During the recent quarter, the order backlog increased by Rs. 900 crore through awards of variations in existing jobs. Moreover, the company’s subsidiary company Steiner AG had an order intake worth Rs. 277 crores.
Headquartered in Mumbai, Hindustan Construction Company Ltd was incorporated in 1928. The company is engaged in the business of providing engineering and construction services, real estate, infrastructure and urban development and management.
Written By Vaibhav Patil
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