HCC Share Price Jumps 5% After Executing ₹3,364 Crore Reduction in Corporate Guarantee to PRPL

The development marks a significant step in the company’s efforts to de-leverage its balance sheet and unlock long-term value for its shareholders.

Despite the reduction in guarantee exposure, HCC continues to retain a 49% equity stake in PRPL, underscoring its strategic interest in the associate entity.

Background: How the Guarantee Reduction Came About

The reduction is directly linked to HCC’s comprehensive debt restructuring plan, implemented in September 2022 in coordination with its lenders. Under this framework:

• HCC transferred ₹2,854 crore of debt to PRPL.
• Additionally, Awards & Claims amounting to ₹6,508 crore were also transferred to PRPL.
• To support this transfer, HCC had initially provided a corporate guarantee covering 100% of PRPL’s borrowings from its lenders.

Following detailed evaluations and approvals from PRPL’s lenders, PRPL’s Board, and all relevant regulatory bodies, HCC’s corporate guarantee obligation has now been revised downward from 100% to approximately ₹571 crore, which represents 20% of the principal amount transferred earlier. Formalities relating to stock exchange approvals for this revised arrangement are currently underway.

As of now, the cumulative PRPL debt, including accrued interest, stands at approximately ₹3,935 crore, while the updated value of Awards & Claims is around ₹6,325 crore.

Strategic Significance for HCC

The revised guarantee structure is an important milestone within HCC’s broader strategic plan to reduce liabilities and enhance financial flexibility. The company stated that this significant reduction in guarantee exposure will:

• Strengthen its balance sheet
• Improve its investment-grade rating potential
• Enhance its credibility with domestic and global lenders
• Support future capital market transactions

The clarity around the revised guarantee obligations is also expected to ease HCC’s access to larger credit facilities, thereby enabling it to pursue new project opportunities in India’s expanding infrastructure sector.

The development aligns closely with HCC’s ongoing capital-raising initiatives, including the recently announced Rights Issue, actively supported by the company’s Promoter Group. HCC confirmed that the new guarantee framework was formally executed on December 11, 2025, in close coordination with its lending banks and in compliance with all regulatory and governance norms.

About Hindustan Construction Company (HCC)

Hindustan Construction Company (HCC) is one of India’s oldest and most respected infrastructure development firms, with nearly a century of engineering excellence. The company has played a key role in several of India’s landmark projects across transportation, water, and energy sectors.

Notable achievements include:

• Construction of 26% of India’s hydroelectric power generation capacity
• Development of 60% of India’s nuclear power generation infrastructure
• Delivery of more than 4,036 lane km of expressways and highways
• Over 402 km of intricate tunneling
• Construction of 403 major bridges

HCC continues to focus on delivering sustainable and critical infrastructure that supports India’s growth story.

Hindustan Construction Company Share Price Jumped Nearly 5% on Thursday

On Thursday, Hindustan Construction Company share price jumped nearly 5% to its intraday high as the company executed a major ₹3,364 crore reduction in corporate guarantee to PRPL. As of 11:04 am the stock price was trading at ₹18.79 per share, up by 3.13%.