HCC Rights Issue Opens: Multibagger Small-Cap Stock Sees 6% Drop

Hindustan Construction Company (HCC), a notable small-cap stock under ₹50, opened its ₹1,000 crore rights issue for subscription on Friday, December 12. The stock slipped 6% in intra-day trade, reflecting short-term market reactions even as the company continues its long-term strategy of debt reduction and financial restructuring.

The rights issue is set to remain open until Monday, December 22, 2025, with December 5 marked as the record date for entitlements.

Market Reaction at Open

• HCC shares fell to a day’s low of ₹17.75 after the rights issue opened.
• The decline followed a modest 4% gain a day earlier, driven by HCC’s debt restructuring announcements.
• Despite the recent volatility, the stock has remained a multibagger over the last five years, delivering a 116% gain.

HCC Rights Issue: Key Details

The company’s board approved the ₹1,000 crore rights issue on December 1, 2025. Key details include:

• Total Issue Size: ₹999.99 crore
• Number of Shares: 79,99,91,900 equity shares
• Issue Price: ₹12.5 per share (including a premium of ₹11.5 per rights share)
• Entitlement Ratio: 277 rights shares for every 630 shares held
• Offer Duration: Open until December 22, may be extended within a maximum of 30 days
• Renouncement Deadlines: On-market by December 17, off-market by December 19

Upon completion, HCC’s total equity will expand from 181 crore shares to 261 crore shares, significantly increasing the company’s shareholder base. Once submitted, applications cannot be withdrawn.

HCC’s Debt Restructuring Milestone

HCC continues to make strides in its balance sheet restructuring, a process that began in September 2022. Recent developments include:

• Corporate guarantee to Prolific Resolution Private Limited (PRPL) reduced from 100% to ₹571 crore, roughly 20% of the principal transferred.
• PRPL’s total debt, including interest, stands at approximately ₹3,935 crore.
• Awards and claims amount to around ₹6,325 crore.

This milestone strengthens HCC’s ability to access larger credit facilities and raise equity capital, supporting the ongoing rights issue. The company coordinated with lenders and stakeholders to ensure all legal and governance requirements were met.

HCC Share Price Trends

The stock has seen significant corrections over the past months:

• December 2025: Down 25%
• November 2025: Down 16%
• Past 6 Months: Down 48%
• Past Year: Down 60%
• 52-Week High: ₹40.23 (December 2024)
• 52-Week Low: ₹17.75

Despite short-term volatility, long-term investors have seen strong returns, with the stock gaining 116% over five years.

Summary

HCC’s ₹1,000 crore rights issue represents a key step in the company’s ongoing strategy to reduce debt and strengthen its financial position. While the stock experienced a short-term dip at the start of the subscription, the broader plan focuses on building equity, improving access to credit, and supporting long-term growth.