Why did shares of Hindustan Construction Company jump by 12% today?

SYNOPSIS: HCC shares surged nearly 12 percent after its Rs. 1,000 crore rights issue was fully subscribed, strengthening equity capital through discounted share issuance.

During Monday’s trading session, shares of a company involved in engineering and construction of infrastructure projects such as dams, tunnels, bridges, hydro, nuclear & thermal power plants, and more, surged nearly 12 percent on the stock exchanges. What triggered this steep rise? Let’s break it down in this article.

At 01:23 p.m., shares of Hindustan Construction Company Limited were trading in green at Rs. 20.19 on BSE, up by around 9 percent, compared to its previous closing price of Rs. 18.53, with a market cap of Rs. 5,289 crores. The stock has delivered negative returns of around 42 percent in one year, but has gained by over 2 percent in the last one month.

What’s the News:

Shares of Hindustan Construction Company (HCC) Limited surged nearly 12 percent on Monday, 22nd December, after the company’s Rs. 1,000 crore rights issue received full subscription on the final day of bidding. The issue is scheduled to close later in the day.

On 26th November, HCC’s board had approved the proposal to raise up to Rs. 1,000 crore through a rights issue of fully paid-up equity shares with a face value of Rs. 1 each, to be offered to eligible shareholders.

Subsequently, on 1 December, the board finalised the terms of the issue. The company offered 79,99,91,900 rights equity shares, aggregating to Rs. 999.99 crore, assuming full subscription. The issue price was fixed at Rs. 12.5 per share, which included a premium of Rs. 11.5 per share, payable at the time of application.

The rights shares were offered in the ratio of 277 shares for every 630 fully paid-up equity shares held as on the record date, which was Friday, 5 December 2025. As a result of the issue, HCC’s outstanding equity share capital is set to increase from 1,81,94,76,162 shares prior to the issue to 2,61,94,68,062 shares post allotment, subject to completion of the process.

In addition to the successful rights issue, Hindustan Construction Company (HCC) secured a major infrastructure contract on 19th December, during market hours. The company won an order worth ~Rs. 901 crore from the Northeast Frontier Railway (NFR) for the construction of New Tunnel No. 28 on the Tupul-Imphal new Broad Gauge railway line. The project has been awarded to the HCC-VCCL Joint Venture, in which HCC holds a 65 percent stake.

Financials & More:

HCC reported a decline in its revenue from operations, showing a year-on-year increase of nearly 32 percent from Rs. 1,407 crores in Q2 FY25 to Rs. 961 crores in Q2 FY26. Similarly, its net profit during the same period decreased from Rs. 64 crores to Rs. 48 crores, representing a fall of around 25 percent YoY.

As of Q2 FY26, HCC has a diversified order book of Rs. 13,152 crores. The transportation segment forms the largest share of the order book, accounting for 63 percent of the total. This is followed by the hydropower segment, which contributes 22 percent, while water-related projects make up 12 percent of the backlog. The remaining 3 percent comes from nuclear and building projects.

In addition to this, the company have a robust bid pipeline which is under tendering at various stages of tendering, amounting to around 57,000 crores, reflecting strong business momentum.

Hindustan Construction Company Limited (HCC), the flagship company of Hindustan Construction Company Group (HCC Group), is principally engaged in the business of providing engineering and construction services of infrastructure projects, including dams, tunnels, bridges, hydro, nuclear and thermal power plants, expressways and roads, marine works, water supply, irrigation systems and industrial buildings across India.

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