HCC Transfers Major Debt to Boost Shareholder Value

HCC announced transferring Rs 2,854 crore in debt to associate company Prolific Resolution Pvt Ltd to create shareholder value. This move significantly reduces HCC's debt burden related to PRPL’s loan facilities. HCC retains a 49% stake and provides a corporate guarantee for the debt owed by PRPL.

Infrastructure giant HCC revealed on Thursday that it has transferred a substantial debt totaling Rs 2,854 crore to its associate company, Prolific Resolution Pvt Ltd (PRPL). The strategic move aims to enhance shareholder value by reducing HCC's overall debt load related to PRPL's borrowing arrangements.

According to an official statement, HCC's debt transfer is part of a broader plan agreed with its lenders. Alongside the debt, Rs 6,508 crore worth of awards and claims were also transferred while maintaining a 49% stake in PRPL.

The company further disclosed it has offered a corporate guarantee covering the entire amount of debt PRPL owes to its lenders. This development is part of HCC's ongoing commitment to support sectors like water infrastructure, industrial development, buildings, and nuclear power.

(With inputs from agencies.)