With reference to the news item appearing in a leading financial daily titled “HCC piggybacks on arm Lavasa”, Hindustan Construction Company Ltd has clarified to BSE that the said news item is partially correct.

Further the Company has informed that, Axis Bank Ltd has invested Rs 250 Crore in Lavasa Corporation Ltd, the subsidiary of the Company in the form of Compulsory Convertible Preference Shares and Convertible Debentures. The letter to this effect along with press release dated June 26, 2008 has already been sent to the exchange.

However, Lavasa Corporation Ltd is in the process of raising further funds including equity. Towards this purpose, Lavasa is in discussion with various Bankers including Deutsche Bank.