HCC shares soar 12% as Lavasa gets go-ahead for Rs 750-cr IPO
New Delhi: Shares of Hindustan Construction Company (HCC) today soared over 12 per cent after its realty arm Lavasa Corporation got a go-ahead for market regulator Sebi for raising Rs 750 crore through an IPO.
Lavasa had filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in July this year for the proposed initial public offer (IPO).
Sebi issued its final observations on the draft offer documents on November 7. Sebi's observations are necessary for the companies to launch any public offer.
Reacting to the IPO go-ahead, HCC shares today rose to a high of Rs 38.25 in early morning trade, with a gain of 12.2 per cent from its previous close. It was trading at Rs 37.35 at the BSE in mid-day trade.
The company, which is developing a large township (hill city) in 10,000 hectares of land in 'Lavasa' near Pune, is making a second attempt to raise money through IPO.
In November 2010, Lavasa had got the Sebi clearance for an IPO to raise up to Rs 2,000 crore, but bad market conditions forced the company to scrap the plan at that time.
As per draft documents, Lavasa plans to launch an IPO of its equity shares of Rs 10 each aggregating to Rs 750 crore. The proceeds from the current issue would be used to fund the company's growth.
The Hindustan Construction Company (HCC) group, which has 68.72 per cent stake in Lavasa, had said that proposed public issue is subject to receipt of requisite regulatory approvals, market conditions and other considerations.