Hindustani Construction Company Sells Off Stake in Steiner AG; Refocus on Core Operations

Hindustan Construction Company (HCC)-the stake in a prominent so-called Swiss firm-has been "internalized" now among HCC's operations. Selling out Steiner AG marks HCC's current transitions in operations and refocused objectives on core business interests.

The stake in Steiner AG has been sold to Uniresolv SA, an affiliate of m3 Immobilier Holding SA, a company based in Geneva. This ensures more autonomy for the subsidiary of Steiner AG, Steiner Development AG (SDAG), possibly paving the way for a future initial public offering (IPO) in Switzerland. HCC's decision to divest this stake indicates that resources would be prioritized toward its Indian projects, which fall in line with the company's long-term growth strategy.

Divested from Steiner AG, the company will, however have Steiner Eagle AG and Steiner India Ltd as its subsidiaries. The two have significant values, not excluding contractual receivables and claims for ₹1,174 crore, along with land assets located in India worth ₹43 crore. The value of these assets is expected to be realized by HCC over the next five years, and it may have earned up to ₹205 crore from the future success of SDAG.

This is expected to strengthen HCC financially and provide the company with leeway in terms of investment and expansion in operations. With this, HCC is likely to tap available opportunities as the company redoubles its efforts back to the Indian market, having reflected growing demand for infrastructure development.

To be precise, this divestment represents a major step for HCC in the consolidation of its resources and the improvement of its financial strength and long-term positioning towards success in India's booming infrastructure sector.