Hindustan Construction Company Ltd. has submitted its Monitoring Agency Report for the quarter ended June 30, 2026. The report, prepared by CARE Ratings Limited, confirms the utilization of funds raised from the company’s Rights Issue of Equity Shares. The utilized proceeds are in line with the objects outlined in the offer document, with no material deviations noted. There was a delay of 76 days in the utilization of funds for Augmenting Working Capital and General Corporate Purpose.
Monitoring Agency Report Submitted
Hindustan Construction Company Ltd. (HCC) has officially submitted its Monitoring Agency Report for the quarter that concluded on June 30, 2026. This report, prepared by CARE Ratings Limited, addresses the utilization of proceeds from the company’s recent Rights Issue of Equity Shares.
Fund Utilization Aligns with Objectives
The report indicates that the utilization of the funds raised from the rights issue is in compliance with the stated objectives. CARE Ratings Limited has reviewed the information provided by HCC and confirmed that the deployment of funds is in line with the disclosures made in the offer document. The total issue size was Rs. 999.99 crore.
Key Areas of Fund Deployment
The primary objects of the issue included:
- Repayment and/or pre-payment of outstanding borrowings (₹625.00 crore).
- Investment in a joint venture, Prolific Resolution Private Limited, for repayment/prepayment of borrowings (₹200.00 crore).
- Augmenting Working Capital (₹100.00 crore).
- General Corporate Purpose (₹35.54 crore).
- Issue Expenses (₹39.45 crore).
Utilization Status and Delays
As of the end of the quarter, all funds allocated for repayment of borrowings and investment in the joint venture have been fully utilized. Augmenting Working Capital has also seen full utilization. While General Corporate Purpose funds were largely utilized, there was a slight shortfall with ₹1.02 crore from unutilized issue expenses being spent towards GCP during Q1FY27. The report also notes a delay of 76 days in the utilization of funds for Augmenting Working Capital and General Corporate Purpose.
No Material Deviations
The monitoring agency has confirmed that there are no major deviations observed over earlier monitoring agency reports, nor have there been any material deviations from the expenditures disclosed in the offer document. Shareholder approval for any such deviations was not required as none occurred. Similarly, the means of finance for the disclosed objects of the issue have not changed.
Source: BSE
