HCC rights issue: Multibagger small-cap stock under ₹50 Hindustan Construction Company (HCC) share price dropped 6 percent in intra-day trade on Friday, December 12, as its ₹1,000 crore rights issue opened for subscription. The issue will remain open until Monday, December 22, 2025, with December 5 set as the record date. The stock fell to a day’s low of ₹17.75.
The decline came a day after HCC gained nearly 4 percent following a key announcement on debt restructuring. The company revealed it has executed a ₹3,364 crore reduction in its corporate guarantee to Prolific Resolution Private Limited (PRPL). The move is part of HCC’s long-running balance sheet restructuring that began in September 2022. Under earlier terms, HCC had transferred ₹2,854 crore of debt and ₹6,508 crore of awards and claims to PRPL while retaining a 49 percent equity stake. HCC had also extended a corporate guarantee covering 100 percent of PRPL’s debt.
HCC Rights Issue: Key Details
The company’s board approved the ₹1,000 crore rights issue on December 1, 2025. Investors wishing to renounce their rights entitlement must do so by December 17 for on-market transfers and December 19 for off-market transactions.
The issue comprises 79,99,91,900 equity shares, amounting to ₹999.99 crore at ₹12.5 per share, including a premium of ₹11.5 per rights share. The entitlement ratio has been fixed at 277 rights shares for every 630 shares held.
Upon completion, HCC’s outstanding share count will rise from 181 crore to 261 crore, significantly expanding its equity base. The board may extend the offer period if required, though the total duration cannot exceed 30 days. The company has clarified that applications, once submitted, cannot be withdrawn.
HCC: Debt restructuring milestone
HCC confirmed that its guarantee obligation has now been reduced from 100 percent of the outstanding PRPL debt to ₹571 crore—equivalent to 20 percent of the principal transferred. According to the company’s release, PRPL’s total debt including accrued interest currently stands at around ₹3,935 crore, while Awards & Claims total approximately ₹6,325 crore.
“Following formal approvals from PRPL lenders, its board and relevant stakeholders, HCC’s guarantee obligation has been reduced from 100 percent of the outstanding amount to ₹571 crore, representing 20 percent of the principal amount transferred,” the company said in a regulatory filing.
The reduction is aligned with HCC’s strategy to deleverage, strengthen its investment-grade rating, and improve access to capital markets. Calling it a pivotal moment, HCC added, “This material event has paved the way for HCC to access larger credit facilities and raise equity capital, including the recently announced Rights Issue which is supported by HCC’s Promoter Group.” The company noted that the revised framework has been executed in coordination with lenders and meets all legal and governance requirements.
HCC share price performance
The small-cap stock has corrected sharply—down 25 percent so far in December after a 16 percent fall in November. HCC now trades more than 56 percent below its 52-week high of ₹40.23, hit in December 2024. It also touched its 52-week low of ₹17.75 earlier this week.
The broader trend remains weak, with the stock falling 60 percent over the past year, 48 percent in six months, 38 percent in three months, and 32 percent in the past month. Still, long-term investors are in the green, as the multibagger has gained 116 percent over five years despite its recent volatility.
