Overview:

• HCC share price gained more than 11% after the company approved December 5, 2025, as the record date for its proposed Rs. 1,000 crore rights issue.

• Huge investor participation was witnessed, with more than 182 million shares changing hands, far above the stock’s 20-day average.

• Rights Issue priced at Rs. 12.50 represents steep discount to market price, maintains the company's balance sheet, and supports future projects.

Hindustan Construction Company rose on Tuesday due to heavy buying in the counter. The stock surged over 11% intraday following fresh corporate announcements. Investors reacted positively after the infrastructure major finalized the record date for its proposed rights issue to raise up to Rs. 1,000 crore for strengthening its balance sheet to partly support its ongoing projects. Let’s explore an in-depth HCC share price analysis based on Moneycontrol data.

Stock Rallies on Heavy Volumes

HCC stock climbed to an intraday high of Rs. 27.50, in a sharp rebound from its previous close of Rs. 24.02. At noon, shares were trading around Rs. 26.74, up 11.32%, amid higher-than-normal market activity.

HCC share price chart on Moneycontrol shows gains of 10.99% at press time:

The counter recorded traded volume of a whopping 182.8 million shares, as against the 20-day average of more than 10 million. Despite the broader market weakness, where the Sensex slipped 0.32% to 85,369, HCC stock emerged as one of the top gainers on BSE.

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Why the Rights Issue Matters

The rally was triggered by the company's announcement that December 5, 2025, has been fixed as the record date for its rights issue. Shareholders who appear on the company's register on that date will be eligible to subscribe.

The board of HCC had approved the capital raise during its meeting held on November 26 and cleared the issuance of 79.99 crore rights shares, aggregating to Rs. 999.99 crore. The shares would be issued at a floor price of Rs. 12.50 each, including a premium of Rs. 11.50 per share.

Eligible shareholders will receive 277 rights shares for every 630 shares held, permitting them to increase their stake at a discount to the prevailing market price.

The rights issue will remain open from December 12, 2025, to December 22, 2025.

Investors will have until December 17 for on-market renunciation and until December 19 for off-market renunciation. Once the process is completed, outstanding  HCC shares would rise from 181 crore to 261 crore, thereby widening the equity base for future growth and debt servicing.

Financial Metrics

The company, at its prevailing price of Rs. 26-27, commands a market capitalisation of around Rs. 4,858 crore. While the stock is still some ways away from its recent 52-week high of Rs. 47.85, it is comfortably above the 52-week low of Rs. 21.97.

Key valuation metrics capture both turnaround expectations and underlying risks:

TTM EPS: Rs. 0.82 (down 71.87% YoY)

TTM PE: 32.56 (above historical averages)

P/B ratio: 5.37 (indicating premium valuation)

Beta: 1.86, reflecting high volatility.

Analyst sentiment, where coverage is limited, is cautious: 100% of analysts currently rate the stock a ‘Sell’. However, traders seem more swayed by near-term catalysts, particularly corporate actions like the rights issue.

Technical picture

HCC share price is presently trading above key pivot levels. Resistance is placed at Rs. 27.17 and Rs. 28.03, while support is near Rs. 25.59 and Rs. 24.73. A sustainable rally above Rs. 27.50 may see the stock move up to the upper circuit limit of Rs. 28.82.

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Conclusion

The announcement of the rights issue has clearly revived investor interest in HCC shares, sending the stock sharply higher. With the company set to expand its capital base and strengthen its finances, market participants are watching closely to see whether the momentum sustains through the rights issue window.

FAQs

1. What caused the huge increase in HCC’s stock price today?

The main reason for HCC stock rising today was the company's announcement of the record date for a Rs. 1,000 crore rights issue (in essence, the right to buy shares).  This announcement generated considerable excitement among investors, driving extensive buying in the shares as reflected in very high volumes and positive market sentiment, allowing the shares to rise amid overall weakness in the broader market.

2. How does the rights issue affect current shareholders?

As part of the rights issue, current HCC shareholders will have the opportunity to acquire new shares at a discounted price of Rs. 12.50 each, enabling them to raise their ownership percentage at a lower cost. However, this would also mean the number of shares outstanding would increase, resulting in dilution.

3. Are HCC shares currently overpriced?

HCC share price is likely to be overvalued at current levels due to the relatively high price/earnings and price/book ratios in relation to the company's recent negative earnings per share performance. However, investors appear to be pricing in future growth, improved liquidity and financial restructuring associated with a rights issue.

4. How will the rights issue benefit HCC over the long term?

The rights issue will infuse Rs. 1,000 crore into HCC, strengthening its liquidity position and providing additional support for large, publicly funded infrastructure projects. If the funds are successfully utilised, they should help alleviate the company's potential future need for additional financing and improve its long-term growth projections.

5. Is it time for new investors to invest in HCC stock? 

There are both good and bad things about going long HCC right now as a new investor. The rights issue, along with strong trading momentum, could be a short-term catalyst for entering or adding to a new position; however, the high valuations, price volatility, and lack of analyst coverage suggest caution is warranted. You should develop a strategy tailored to your individual risk tolerance that takes into account both the positive and negative factors influencing your decision to go long on HCC.