Monitoring Agency Report for the quarter ended March 31, 2025
HCC · price
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Hindustan Construction Company (HCC) has submitted the Monitoring Agency Report from CARE Ratings for the Q4FY25 quarter, tracking the use of proceeds from its Rs. 600 crore QIP issue conducted in December 2024. Of the total amount, Rs. 395.93 crore has been utilized so far, with Rs. 204.07 crore still unutilized. The company used Rs. 190 crore for repayment of borrowings, fully deployed Rs. 150 crore for working capital (mainly TDS, GST, supplier and subcontractor payments), Rs. 22.81 crore for general corporate purposes (salaries and admin expenses), and Rs. 33.12 crore for issue expenses. The unutilized Rs. 204.07 crore is parked in fixed deposits with ICICI Bank earning 6.75% interest, along with a small escrow and monitoring account balance. The report notes delays in completing the debt repayment and general corporate purposes objectives, while working capital deployment is complete.
For shareholders, this is a routine regulatory disclosure showing that the QIP funds are largely being used as promised — mostly to cut debt and support operations. The continued delay in completing the debt repayment goal and the Rs. 200 crore still pending deployment may draw some attention, but parking unutilized funds in FDs at 6.75% means the company is at least earning returns on idle money rather than letting it sit unproductively.