Shares of infrastructure major Hindustan Construction Company (HCC) witnessed a sharp rally on Tuesday, climbing over 14% in a single trading session. This surge in investor sentiment followed the company's official announcement regarding the crucial record date for its upcoming rights issue, a significant capital-raising exercise.
Key Details of the HCC Rights Issue
In a filing to the stock exchanges, HCC confirmed that Friday, December 5, 2025, will serve as the record date. This date determines which shareholders are eligible to participate in the fundraising initiative. The company's board had earlier approved the issuance of a massive 79.99 crore rights equity shares to raise ₹1,000 crore.
The rights issue price has been fixed at ₹12.5 per share. This price point represents a substantial 48% discount to HCC's closing share price on Monday, making it an attractive proposition for existing investors. The structure ensures that for every 630 fully paid-up equity shares held as of the record date, a shareholder will be entitled to 277 rights equity shares.
The subscription window for the rights issue is scheduled to open on Friday, December 12, 2025, and will close on Monday, December 22, 2025. The company has also outlined the last dates for investors wishing to transfer their rights: December 17 for on-market renunciations and December 19 for off-market renunciations.
Financial Impact and Shareholder Considerations
This capital infusion is critical for HCC, a leading player in large-scale engineering and infrastructure projects across India. The rights issue mechanism allows the company to raise funds directly from its current shareholders, typically at a discount, giving them the first opportunity to maintain their proportional ownership and avoid dilution.
Upon successful completion of the issue, HCC's total outstanding shares will increase significantly from approximately 181 crore to 261 crore, expanding the company's equity base. The ₹12.5 issue price includes a premium of ₹11.5 per rights equity share, payable at the time of application.
HCC Stock Performance and Trajectory
Driven by the rights issue news, HCC's share price hit an intra-day high of ₹27.46, marking a 14.2% jump. Despite this impressive single-day gain, the stock's broader trend reveals recent challenges. It currently trades 42.5% below its 52-week high of ₹47.83, reached in December 2024.
The stock has faced sustained pressure, declining 38% over the past year and 23% in the last six months. However, a longer-term perspective paints a different picture. HCC has delivered multibagger returns of 342% over the last five years, showcasing its potential to reward patient, long-term investors despite periods of volatility. The company's extensive portfolio, which includes dams, power plants, tunnels, bridges, and expressways, continues to underpin its fundamental strength in India's infrastructure landscape.
