HCC Rights Issue News: Hindustan Construction Company Shares Fall Amid Trading Volume Clarification

Hindustan Construction Company (HCC) shares saw a sharp fall in early December, raising investor attention across Indian stock markets. The small-cap stock, known for its long-term multibagger performance, dropped significantly over four consecutive trading sessions, following a clarification sought by the stock exchange regarding unusual trading volumes.

Market Performance: HCC Share Price Overview

HCC’s share price has faced notable pressure recently:

• On December 8, 2025, HCC shares fell 5.6%, continuing a four-session decline totalling 16%.
• Intra-day trading on the same day saw a 10.8% drop, with shares touching ₹17.77, marking a significant correction from recent highs.
• Over the past year, the stock has fallen 60%, yet it has delivered 163% returns over five years, highlighting its long-term multibagger potential.

The recent correction follows an earlier 10.5% jump in HCC shares on December 3, 2025, after the announcement of its ₹1,000 crore rights issue. The market remained cautious after the exchange sought clarifications regarding the sudden increase in trading volumes.

Clarification Sought From HCC

The exchange contacted HCC on December 3, 2025, requesting details about the unusual trading activity. In response, HCC stated:

• The company has always provided timely disclosures under SEBI regulations.
• The spike in trading volumes is purely market-driven.
• There are no pending announcements or undisclosed events.
• Any future significant developments will be reported as per SEBI guidelines.

Despite this clarification, HCC shares continued their downward trend, reflecting cautious investor sentiment ahead of the rights issue.

HCC Rights Issue Details

HCC has planned a significant rights issue to raise funds and expand its equity base. Key points include:

• Board Approval: Rights issue approved on December 1, 2025.
• Issue Size: ₹999.99 crore, comprising 79,99,91,900 equity shares.
• Issue Price: ₹12.5 per share, including a premium of ₹11.5 per rights share.
• Record Date: December 5, 2025.
• Opening & Closing Dates: From December 12 to December 22, 2025.
• Entitlement Ratio: 277 rights shares for every 630 shares held.
• Renunciation Dates:
  • On-market: Cutoff on December 17, 2025.
  • Off-market: Cutoff on December 19, 2025.

Post-issue, HCC’s outstanding shares will increase from 181 crore to 261 crore, reflecting a substantial equity expansion. The board retains the option to extend the offer period, but the total duration cannot exceed 30 days.

HCC Share Price Trends

HCC shares have faced sharp corrections amid market activity:

• The stock trades 53% below its 52-week high of ₹40.23 (December 2024).
• The recent intra-day low of ₹17.77 highlights current volatility.
• A four-session decline resulted in a 20.5% loss since December 3, 2025.
• Down 46% over the last six months and 29% in the past month, while five-year returns remain strong at 163%.

Despite the short-term volatility, HCC’s long-term performance as a multibagger small-cap stock continues to attract attention among investors tracking Indian stock markets.

Summary

HCC’s recent price movement reflects a mix of market caution and technical adjustments following unusual trading volume scrutiny. The upcoming ₹1,000 crore rights issue has kept investors engaged, while the stock’s long-term track record demonstrates its potential as a small-cap multibagger.

Key Takeaways:

• HCC shares have dropped 16% over four sessions, with intra-day volatility reaching 11%.
• The rights issue is set to open on December 12, 2025, with a record date of December 5.
• Post-issue, share count rises to 261 crore, marking significant equity expansion.
• Long-term performance remains robust with 163% returns in five years.

HCC continues to be closely watched in Indian stock markets, especially by those tracking multibagger small-cap stocks under ₹50.