HCC wins ₹901 crore infrastructure order from Northeast Frontier Railway; Stock rises

HCC Ltd. on Friday, December 19, said its joint venture company has won an infrastructure contract worth ₹901 crore from the Northeast Frontier Railway.

As per the order, the HCC-VCCL joint venture will construct a new tunnel 28 on the Tupul-Imphal new broad gauge railway line. HCC holds 65% stake in the JV.

The contract comprises the construction of a 3.5 kilometer main tunnel, with design, engineering and commissioning services. The scope of work includes design and proof-checking of a broad-gauge ballast-less track, followed by the supply, installation, testing and commissioning of all related systems and structures required for railway operations.

The project also includes the design, supply, putting up of and commissioning of the tunnel ventilation systems and the complete electro-mechanical works, construction of approach roads and other required ancillary works for the integration with the surrounding infrastructure.

HCC is also currently in the process of raising ₹1,000 crore through a rights issue, which is currently in its second-last day of bidding.

The company intends to issue 79.99 crore shares at a price of ₹12.5, to raise those ₹1,000 crore.

As of 1 PM on Friday, the rights issue had received subscription of 71.84 crore shares, indicating that the issue is nearing full subscription as bids close on Monday, December 22.

Shares of HCC are recovering from the lows of the day, currently trading 1.1% higher at ₹18.2, well above the rights issue price. The stock is down 44% so far this year.

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