Shares of the Mumbai-based real estate firm HCC (Hindustan Construction Company) tumbled about 24% to a 22-month low in the early morning deals on Thursday with unusually high trading volumes seen on the counters of NSE and BSE. The reason for the massive declines in the share prices of HCC was not known, up until now. Shares of HCC were the biggest losers among the ‘A’ group deck on the Bombay Stock Exchange on Thursday. HCC Shares have seen huge declines in the share prices for two times in the last two months.
The stock of HCC crashed as much as 23.98% to a 22-month low bottom of Rs 17.75 on BSE while the stock plunged 23.72% to a 22-month low of Rs 17.85 on NSE on Thursday. Shares of HCC hit the lowest in the last 22-months on Thursday. The stock of HCC made a low of Rs 17.8 on 1 March 2016 on NSE. Very unusual trading volumes were witnessed in the share of HCC on Thursday, as at 10:27 am, more than 3 crore equity shares exchanged hands on both NSE and BSE with about 2.53 crore equity shares on NSE alone.
Following the steep drop in the share prices of HCC, about Rs 570 crore was wiped off from the market capitalisation of the company. As per the 22-month low HCC share price of Rs 17.75, HCC held a market capitalisation of Rs 1,807 crore as against a market capitalisation of Rs 2,377 crore as on 2 May 2018 on BSE.
Earlier in March this year, HCC shares dropped more than 15% on news reports of its subsidiary ‘Lavasa’ heading for bankruptcy. Following which exchanges have sought clarification from the company. In regard to the clarification sought by exchanges, HCC said, “we wish to clarify that the said news item in a section of media is misleading and without any basis. Please note that Lavasa Corporation Ltd (Lavasa) has been working jointly with the consortium of lenders for a financial solution for Lavasa. Due to RBI’s recent notification on IBC, the process has been slowed down till further clarity on the finer nuances of the revised framework emerge.”
“Lavasa is hopeful of a comprehensive solution for its debt recast once the revised framework is deliberated to the satisfaction of all involved. Lavasa’s top priority is to safeguard the interest of all stakeholders, including home buyers, who have believed in and supported the project,” HCC added.