Infra stock jumps 14% after announcing ₹1000 Cr rights issue  

Synopsis: The shares of this construction company skyrocketed 14% following the announcement made by the company about the rights issue at an almost 54.5% discount. 

The shares of this company, which is involved in engineering and construction of infrastructure projects such as dams, tunnels, bridges, hydro, nuclear, and more, had its share in the news after the board approved the rights issue aggregating to Rs 1,000 crore. 

With a market cap of Rs 4,890 crore, the shares of Hindustan Construction Company Ltd gained about 14 per cent, reaching a high of Rs 27.46 in today’s trading session when compared to its previous day’s closing price of Rs 24.05. The shares are trading at a PE of 29.33, whereas the industry PE is 24.83, and have given a return of 311% over the last 5 years.  

About the rights issue. 

HCC’s Rs 1,000 crore rights issue comes at a crucial time for the company, and the board has now locked in all key terms. As per the filing, HCC will issue 79.99 crore new shares at Rs 12.50 each, giving existing shareholders an affordable entry point to increase their stake. The entitlement ratio is 277 shares for every 630 held, which is structured to ensure wide participation while raising almost the entire targeted amount. 

The record date for the issue is 5 December and is at a discount of 54.5% from today’s high. For long-term investors, this becomes an opportunity to average down and participate in the company’s attempt to rebuild financial strength.

This equity raise, which will increase the share count from 181.9 crore to 261.9 crore shares, indicates HCC’s effort to finally stabilise its balance sheet. With fresh capital, HCC being a construction company, will get room to improve working capital, clear dues, and support ongoing EPC projects, which is critical in a sector where payment cycles can stretch for months. This stronger footing also improves its eligibility when bidding for large government-backed infrastructure and urban development projects, where financial solidity is a prerequisite.

The timeline for the rights issue will be opening on December 12 and closing on December 22. The board has kept a provision to extend the window if necessary, ensuring no shareholder is left out. Beyond the immediate fundraising, the important signal here is that HCC is preparing for a cleaner, more sustainable capital structure after years of financial strain. If executed well, this rights issue could mark the beginning of a more stable growth phase, especially as India’s infrastructure spending cycle remains strong.

Financials and more. 

The revenue from operations stands at Rs 1,407 crore in Q2 FY25 and Rs 961 crore in Q2 FY26, showcasing a YoY fall of 32%. Along with the sales, the profits also fell from Rs 64 crore in Q2 FY25 to Rs 48 crore in Q2 FY26, tumbling 25%. 

HCC’s Rs 13,152 crore order book shows that the company has a strong pipeline of work lined up, giving it clear revenue visibility ahead. Most of the orders come from the transportation sector, contributing 63%; the hydro segment contributes 22%, another 12% comes from water projects, and the remaining 3% from nuclear and buildings. Overall, the mix feels balanced and steady, showing that HCC is not relying on just one segment but building across multiple long-term infrastructure themes.

HCC is one of India’s oldest infrastructure builders, carrying nearly a century of experience in shaping the country’s backbone. Over the years, the company has worked on some of the nation’s most complex and high-impact projects, whether it’s highways and bridges, metro corridors, dams, tunnels, or even nuclear facilities.

Its expertise spans almost every major infrastructure segment, including water systems and large industrial or institutional buildings. With this wide skill set and long history of execution, HCC has built a reputation for taking on technically demanding projects and continues to play a meaningful role in India’s growth story.

Written by Leon Mendonca. 

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