Infrastructure Company, Hindustan Construction Company (HCC) said on Friday that it is going to sell 74 per cent of its stake to IL&FS through its subsidiary.

HCC Real Estate will be selling the equity share in its 247 Park to IL&FS Milestone Fund.

The total value of the deal is expected to be Rs. 775 crore in which the total debt component is going to be Rs. 380 crore. And as per the latest news, HCC will be getting Rs. 292 crore in form of cash while the remaining amount will be in other forms.

Experts believe that this is a positive sign for the company and as such the markets too have given their positive nod.

Post the announcement, the share prices of the company went up by 1.53 per cent to end at Rs. 113.24.

The money, they say, will help HCC in managing the debt-equity ratio. In FY 2010, it stood at 1.63 times as against 2.63 during the previous year.

Now, the company is selling its stake and also the land properties that it has built so that it can pay back its debt and also invest the remaining back into the business.