Hindustan Construction Company will seek its board’s approval to raise long term funds to meet its capital expenditure and growth plans. The agenda for the April 24 board meet was to approve its financial results. It has been expanded now, and the board will also consider the company’s plan to raise funds through an equity issue, including a rights issue.
HCC undertakes engineering and construction contracts, for industrial, infrastructure and commercial projects. Its latest diversification has been into real estate, setting up a massive project in Maharashtra called Lavasa. The Rs 3,000 crore turnover company is promoted by Ajit Gulabchand.
Most project companies are facing problems due to project delays and funding issues. The problems of real estate companies are more since demand has dried up. HCC said in its December 2008 results that it has not faced problems of lenders backing out from loans but its interest rates have been hiked. In April-December 2008, its interest cost had risen by 36%. The equity issue will provide it with additional liquidity.