HCC share price: Stock declines up to 23% as scrip turns ex-rights issue; details to consider

The ex-rights issue is the date used to determine which existing shareholders are eligible for the upcoming rights issue that the company has announced earlier.

In HCC's case, the company announced a ₹1,000 crore rights issue in November and the terms of the issue were finalised this week.

The stock declined as much as 23% to hit the day's low of ₹19.94 on the NSE, as the stock adjusted for the said corporate action.

In its regulatory filing on December 1, HCC said, "This is further to the Meeting of the Securities Issuance Committee of the Board of Directors of the Company held on November 26, 2025, approving the offer and issuance of fully paid-up Equity Shares of the Company (the "Rights Equity Shares") for an amount not exceeding ₹1000 crore, by way of a Rights Issue ("Rights Issue"), in accordance with the Companies Act, 2013."

The company said that the board approved the following terms of the issue price:

• Total number of Rights Equity Shares and Rights Issue size: 79,99,91 ,900 Rights Equity Shares each for an amount aggregating to Rs. 999.99 Crore (assuming full subscription).

• Rights Issue Price: Rs.12.50 per Rights Equity Share (including a premium of Rs. 11 .50 per Rights Equity Share) payable on application

A stock trades ex-rights when new buyers are no longer entitled to receive the rights issue shares.

'Ex-rights' means that anyone who buys HCC shares today or later will not get the rights entitlement associated with the rights issue.

Because of this, the total number of shares will increase sharply—from about 181.94 crore to 261.94 crore. That dilution means each existing share now represents a smaller slice of the company’s equity.

Why does a stock fall on the ex-rights date?

A rights issue means the company will create new shares and give them to existing shareholders at a discounted price. When a company issues more shares while its underlying business remains the same, each individual share ends up representing a smaller ownership portion of the company.

So, the market adjusts the price downward.

About HCC

Hindustan Construction Company Ltd is a major engineering and construction company with expertise in the infrastructure segment. The company is primarily engaged in high-value projects for transportation, power, marine, oil and gas pipeline construction, irrigation, water supply, utilities and urban infrastructure. Founded by Seth Walchand Hirachand in 1926, it is headquartered in Mumbai.

The company also undertakes various construction and engineering works for hydroelectric power projects and nuclear power projects. HCC has completed several projects pertaining to the construction of dams, barrages, tunnels and powerhouses.

The HCC constructed Maharashtra's first dam post-independence, the Vaitarna Dam, in 1954. It constructed the Sone Barrage, India’s first barrage in Bihar, in 1966, and also the world’s longest barrage, the Farakka Barrage in West Bengal, in 1971.