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Hindustan Construction Company announced earlier this week that its board had cleared a substantial rights issue aimed at mobilising up to INR 1,000 crore. The company confirmed that it would issue 79.99 crore rights equity shares, offering them to eligible shareholders in the ratio of 277 shares for every 630 fully paid-up shares. The board had taken this decision in a meeting held earlier this past week, with the record date for eligibility set for later in the week. The move is part of HCC's ongoing efforts to strengthen its capital structure without increasing debt.
Hindustan Construction Company stated earlier this week that its board had approved the issuance of 79.99 crore rights equity shares as part of a plan to raise up to INR 1,000 crore. According to its regulatory disclosure, the company will extend this rights issue to eligible shareholders in the proportion of 277 rights equity shares for every 630 fully paid-up equity shares held as of the designated record date, which has been scheduled for later this week. Advertisement
The firm mentioned that the proposal had been endorsed by the board in a meeting held earlier in the past week, during which it sanctioned the offer and issuance of fully paid-up shares through a rights issue not exceeding INR 1,000 crore. HCC reiterated that this capital-raising mechanism-commonly used by listed companies-allows shares to be issued at a discounted valuation compared with the prevailing market price, thereby enabling fundraising without adding pressure to the company's debt obligations.
The company has previously utilised various refinancing and restructuring measures to stabilise its balance sheet, especially as infrastructure players have been navigating liquidity constraints and slower payment cycles from government agencies. The present rights issue aligns with HCC's longstanding strategy to bolster its financial position while maintaining operational momentum across ongoing national infrastructure projects.
HCC's decision to undertake a sizeable rights issue underscores its broader intention to reinforce financial stability and maintain progress across its infrastructure portfolio. By opting for equity-based fundraising rather than additional borrowing, the company aims to balance capital requirements with long-term sustainability. As the infrastructure sector continues to witness heightened activity, especially in transportation and urban development, improved liquidity will be critical for timely execution of major projects. The rights issue therefore marks another step in HCC's efforts to manage financial pressures while positioning itself for future growth.
Source - PTI
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