Hindustan Construction Company Limited has completed the assignment of arbitration awards valued at ₹1,979.09 crore to its wholly owned subsidiary HCC Contract Solutions Limited. The transaction was formalized through a Deed of Assignment executed on March 31, 2026, as part of the company's strategy to pursue arbitration awards more efficiently and maximize recovery value.

Transaction Details and Approvals

The assignment follows a structured approval process that began with Board resolutions passed on December 4, 2024, and shareholder approval at an Extra-Ordinary General Meeting held on March 13, 2025. These approvals empowered the Board and its Authorisation Committee to identify special purpose vehicles and determine the optimal method for transferring arbitral awards.

The Authorisation Committee approved the transaction in its meeting held on February 12, 2026, specifically authorizing the sale, transfer, and assignment of economic and beneficial interest in existing arbitration awards to the subsidiary.

About HCC Contract Solutions Limited

HCC Contract Solutions Limited, the recipient entity, was incorporated in 2009 and operates as a specialized subsidiary focused on claims management and dispute resolution. The company's core business activities include:

• Arbitration and litigation proceedings on behalf of clients
• Claims management and dispute resolution services
• Legal proceedings facilitation and settlement enforcement
• Financial, tax, HR, and corporate consultancy services

The subsidiary reported total income of ₹ Nil and a net worth of ₹ (0.01) crore as part of the company's consolidated financials.

Regulatory Compliance and Disclosures

The transaction has been disclosed under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. Key regulatory aspects include:

The company has confirmed that the transaction does not constitute a related party transaction and that the buyer does not belong to the promoter or promoter group, despite being a wholly owned subsidiary.

Strategic Rationale

The assignment represents Hindustan Construction Company's strategic approach to optimize the recovery of arbitration awards through focused management. By transferring these awards to a specialized subsidiary with expertise in claims management and dispute resolution, the company aims to enhance the efficiency of award pursuit and maximize recovery value. The net transfer value of ₹ Nil reflects the offsetting nature of the award value against corresponding advance liabilities.

Hindustan Construction Company Limited has received comprehensive credit rating reaffirmations from CARE Ratings Limited across its various financial instruments and bank facilities. The rating agency confirmed its assessments based on the company's operational and financial performance for FY25 and 9MFY26, maintaining stability in the credit outlook.

Credit Rating Reaffirmations

CARE Ratings Limited reaffirmed multiple credit ratings for the construction major, covering a substantial portfolio of financial instruments. The rating review was conducted on March 30, 2026, following evaluation of recent developments in the company's operational and financial performance.

Bank Facilities Structure

The company's long-term bank facilities worth ₹98.72 crore consist primarily of foreign currency term loans. These include facilities from the Export Import Bank of United States amounting to 6.89 million USD (₹56.04 crore) and Asia Opportunities IV (Mauritius) Limited totaling 7.56 million USD (₹42.68 crore).

The substantial long-term and short-term bank facilities of ₹7,313.28 crore comprise mainly non-fund based limits across multiple banking partners. Major contributors include Punjab National Bank (₹1,392.44 crore), ICICI Bank (₹1,234.82 crore), and IDBI Bank (₹963.22 crore), among others.

Debenture Portfolio

The rating reaffirmation covers debenture instruments totaling ₹733.27 crore. The Non-Convertible Debentures worth ₹457.90 crore are scheduled for repayment between March 31, 2026, and June 30, 2031. The Optionally Fully Convertible Debentures of ₹275.37 crore will be repaid through seven structured annual installments ending March 31, 2029.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulations 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The rating reaffirmation letters from CARE Ratings Limited have been communicated to both BSE Limited and National Stock Exchange of India Limited as required by regulatory framework.

Total Financial Exposure

The comprehensive rating reaffirmation covers total facilities worth ₹8,145.27 crore, demonstrating the significant scale of Hindustan Construction Company's financial operations. CARE Ratings reserves the right to undertake surveillance and review of these ratings periodically, with at least one review conducted annually based on the company's performance and market circumstances.