HCC spurts up by 17 per cent post rights issue

The stock of HCC was buzzing on Monday after the company's rights issue was oversubscribed. The company raised Rs. 497.58 crore last week.

Hindustan Construction Company (HCC) had floated a rights issue of equity shares to existing shareholders for an amount not exceeding Rs. 500 crore. The issue closed on December 17 and on December 27, last week the company filed an information with the exchanges giving details of the issue. The company stated that valid applications were received for 110.74 per cent of the aggregate issue of up to 49,75,76,833 equity shares. The company plans to retain Rs. 497.58 crore and the balance will be refunded to investors.

With this right issue offer, the company promoter stake has increased to 33 per cent, as against 27 per cent before the offer, meaning around 50 per cent of the issue was subscribed by promoters.

Also, for the record, the recently inaugurated 4.9 km long Bogibeel bridge across Brahmaputra river connecting Assam and Arunachal Pradesh was built by HCC at a cost or Rs. 5,800 crore. The bridge is the first of its kind rail-cum-road bridge in India with a three-lane road on the top deck and two-line rail track on its lower deck.

At 14:11 hours, the stock of HCC was quoting Rs. 12.93 per share, up by 17.12 per cent, when the BSE Sensex was at 36,112.06, up by 35.34 points or 0.10 per cent, on Monday.