Hindustan Construction Company (HCC) approved the issuance of equity shares as well as optionally convertible debentures (OCDs) to lenders under Reserve Bank of India’s S4A scheme.
The board of directors, in a meeting held on Friday, approved issuance of 25.19 crore equity shares of the company, of face value R1 each, representing 24.44% of the expanded share capital of the company. The board also approved, OCDs of face value R1,000 each not exceeding R2,000 crore on preferential basis to the lenders, the company said.
The board has also approved R2,100 crore bank guarantee limits for release of arbitral award amount as per Cabinet Committee on Economic Affairs (CCEA) approval for revival of the construction sector directing government agencies to pay “75% of the arbitral award amount against margin free bank guarantee”.
HCC has arbitration awards for R3,427 crore as of September 30, 2016. Further claims worth around R4,173 crore are in arbitration process, the statement said.