Penny stock under Rs 20 with Rs 13,152 crore order book: Civil Construction company executes Rs 3,364 crore reduction in corporate guarantee to PRPL

Construction-company-ltd-100185">Hindustan Construction Company Limited (HCC) has achieved a major milestone in its liability reduction strategy by announcing a Rs 3,364 crore reduction in its corporate guarantee exposure related to Prolific Resolution Private Limited (PRPL), an associate company. This action is designed to create long-term shareholder value and de-leverage HCC's balance sheet. Previously, HCC had transferred an aggregate debt of approximately Rs 2,854 crore and about Rs 6,508 crore in Awards & Claims to PRPL, while maintaining a 49 per cent equity stake in the entity. Crucially, HCC had initially provided a corporate guarantee covering 100 per cent of the debt owed by PRPL to its lenders. With accrued interest, the current figures for PRPL's debt and Awards & Claims stand at approximately Rs 3,935 crore and Rs 6,325 crore, respectively.

Following formal approvals from PRPL's lenders, its Board, and relevant stakeholders, HCC's guarantee obligation has been significantly reduced from 100 per cent of the outstanding amount to only approximately Rs 571 crore. This reduced obligation now represents just 20 per cent of the principal amount originally transferred. This material event is a significant step in HCC's ongoing commitment to strengthening its balance sheet and is expected to reinforce its investment-grade rating. By substantially reducing this contingent liability, the company is now better positioned to access larger credit facilities and capital markets, enabling it to scale its operations and pursue stronger future growth.

About the Company

HCC is a business group developing and building responsible infrastructure through next practices. With an engineering heritage of nearly 100 years, HCC has executed a majority of India's landmark infrastructure projects, having constructed 26% of India's Hydro Power generation and 60% of India's Nuclear Power generation capacities, over 4,036 lane km of Expressways and Highways, more than 402 km of complex Tunnelling and 403 Bridges. Today, HCC serves the infrastructure sectors of Transportation, Power and Water.

As of September 30, 2025, the company’s Order Book stands at Rs 13,152 crore. The stock is up by 70 per cent in just 1 year and gave multibagger returns of 330 per cent in 3 years.

Disclaimer: The article is for informational purposes only and not investment advice.