HCC builds on Lavasa nod

HCC has been stubbornly sitting amongst the top gainers on the BSE, currently up almost 8% at Rs.36.75, with volumes spiking up almost 2 times. Its intra day high stands at Rs.38.25 and 52-week high is at Rs.49.

The stock is reacting positively to the much awaited clearance given by SEBI for its realty arm, Lavasa Corporation. The plan now is that we might soon see an IPO from Lavasa, aiming to raise Rs.750 crore. This is great news for HCC shareholders as it owns a 68.7% stake in Lavasa.

This would be the company’s second attempt at the IPO markets; the earlier nod from SEBI was in Nov’10 and the issue did not go through due to poor market conditions. Hopefully, this time around the IPO will see the light of the day. The company plans to use the proceeds of the IPO to fund its future growth.

Lavasa is developing a 10,000 hectares large township near Pune.