Hindustan Construction Company has executed a significant reduction in its corporate guarantee obligations, marking a major milestone in liability reduction while retaining equity upside. The infrastructure company has successfully reduced its corporate guarantee for Prolific Resolution Private Limited (PRPL) by ₹3,364.00 crore.

Debt Restructuring Background

As part of HCC's debt restructuring plan with lenders in September 2022, the company had transferred ₹2,854.00 crore of debt and ₹6,508.00 crore of awards and claims to PRPL, while retaining a 49% equity stake in the entity. HCC had initially provided a corporate guarantee for 100% of PRPL's debt to its lenders.

Guarantee Reduction Details

Following formal approvals from PRPL lenders, its Board, and relevant stakeholders, HCC's guarantee obligation has been reduced from 100% of the outstanding amount to ₹571.00 crore. This represents 20% of the principal amount transferred, with exchange approval related formalities currently in progress.

With accrued interest, the total amount of PRPL debt along with awards and claims is currently ₹3,935.00 crore and ₹6,325.00 crore, respectively. The revised guarantee framework has been executed in coordination with lending institutions and is in compliance with applicable regulatory, legal, and governance requirements.

Strategic Impact and Future Outlook

This reduction is part of HCC's ongoing commitment to de-leverage its balance sheet, strengthen its investment grade rating, and access capital markets for stronger future growth as it scales its operations. The material event has paved the way for HCC to access larger credit facilities and raise equity capital, including the recently announced Rights Issue which is supported by HCC's Promoter Group.

The substantial decrease in corporate guarantee obligations represents a significant improvement in the company's contingent liabilities and overall financial flexibility, creating long-term value for shareholders while maintaining the 49% equity upside in PRPL.

Hindustan Construction Company (HCC) has responded to an inquiry from the Bombay Stock Exchange (BSE) regarding a notable increase in trading volume of its securities across exchanges. The company issued a clarification on December 3, 2025, addressing the market's concerns and maintaining transparency with its investors.

Key Points of HCC's Response

• Volume Surge: HCC confirmed that the significant increase in trading volume is purely market-driven.
• Disclosure Compliance: The company assured that it has consistently made timely disclosures to the exchanges for all events and information as required by Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• No Pending Announcements: HCC stated that there are no pending announcements, disclosures, events, or information that require reporting at this time.
• Future Commitments: The company committed to promptly informing the exchanges of any future events in accordance with applicable SEBI Regulations.

Implications for Investors

This clarification from HCC serves as a reminder of the importance of official company communications in interpreting market movements. While significant volume changes can often signal impending news or developments, in this case, the company has explicitly stated that the surge is not tied to any undisclosed material information.

Investors and market participants should note that:

1. Market-driven volume increases can occur without company-specific catalysts.
2. Companies listed on Indian exchanges are bound by strict disclosure norms to ensure fair and transparent trading.
3. Official clarifications, like the one provided by HCC, are crucial for maintaining market integrity and investor confidence.

As the situation develops, stakeholders are advised to rely on official communications from HCC and regulatory bodies for accurate and timely information.