Hindustan Construction Company (HCC) saw its share price drop by 6% 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. The stock fell to a day’s low of ₹17.75.
The decline came a day after HCC gained nearly 4% 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). This 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% equity stake. HCC had also extended a corporate guarantee covering 100% of PRPL’s debt.
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.
HCC confirmed that its guarantee obligation has now been reduced from 100% of the outstanding PRPL debt to ₹571 crore—equivalent to 20% 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.
HCC noted that the revised framework has been executed in coordination with lenders and meets all legal and governance requirements. 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 small-cap stock has corrected sharply—down 25% so far in December after a 16% fall in November. HCC now trades more than 56% 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.
Despite the recent volatility, long-term investors are in the green, as the multibagger has gained 116% over five years. The company’s debt restructuring efforts and rights issue are expected to strengthen its investment-grade rating and improve access to capital markets.
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