HCC shares slide 6% to 52-week low as Rs 1,000 crore rights issue opens today

Shares of Hindustan Construction Company (HCC) fell sharply by 6% on Friday to hit a new 52-week low of Rs 17.75 on the BSE, coinciding with the commencement of the company’s Rs 1,000 crore rights issue.

The drop in share price came as investors reacted to the opening of the offer, which aims to raise substantial equity capital through the issuance of nearly 80 crore new shares to eligible shareholders.

In a previous filing to the exchanges, HCC disclosed the detailed terms of the rights issue following approval from its Securities Issuance Committee. The total issue size comprises 79,99,91,900 equity shares, aggregating to Rs 999.99 crore assuming full subscription.


The rights shares are priced at Rs 12.50 each, which includes a face value of Rs 1 and a premium of Rs 11.50, fully payable on application. The entitlement ratio for the issue has been set at 277 rights equity shares for every 630 fully paid-up equity shares held by eligible shareholders as of the record date.

HCC rights issue timeline

The record date for determining eligible shareholders for the rights issue was fixed as December 5.

The rights issue opened on Friday, December 12, and will remain open for subscription until Monday, December 22. The last date for on-market renunciation of rights entitlements is Wednesday, December 17, while off-market renunciation can be done until Friday, December 19.

The Board or an authorized committee retains the right to extend the issue period if required, provided it does not exceed thirty days from the opening date. Additionally, no withdrawal of application is permitted once the issue closes.

Share capital post-issue

Prior to the rights issue, the company had a total of 1,81,94,76,162 outstanding equity shares. Upon completion of the issue and assuming full subscription, the number of outstanding shares will rise to 2,61,94,68,062.

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The rights issue is being conducted exclusively for existing shareholders registered on the record date. The company has clarified that further details, including terms related to fractional entitlements and shareholders with zero entitlement, will be provided in the Letter of Offer to be filed by the company.

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