Hindustan Construction Company (HCC) has taken a major step toward strengthening its balance sheet by executing a substantial reduction of ₹3,364 crore in the corporate guarantee extended to Prolific Resolution Private Limited (PRPL), an associate company. The move is expected to create meaningful long-term value for shareholders as the company continues its broader deleveraging strategy.
HCC had earlier transferred around ₹2,854 crore of debt and approximately ₹6,508 crore of awards and claims to PRPL while retaining a 49 percent equity stake. To facilitate this structure, the company had provided a corporate guarantee covering the entire debt owed by PRPL to its lenders. With accumulated interest, PRPL’s outstanding debt currently stands at nearly ₹3,935 crore, and awards and claims total close to ₹6,325 crore.
After securing approvals from PRPL’s lenders, its Board, and other key stakeholders, HCC’s guarantee obligation has been cut to about ₹571 crore. This represents 20 percent of the principal debt transferred, marking a sharp reduction from the earlier 100 percent exposure. The updated guarantee arrangement aligns with HCC’s ongoing efforts to improve its leverage position, reinforce its investment-grade credit profile, and enhance access to capital markets as the company expands its operations.
