HCC Raises Rs 600 Crore Through QIP

Hindustan Construction Company Ltd. successfully concluded its Qualified Institutional Placement on Thursday, raising Rs 600 crore.

The issue, which opened on Dec. 16, saw the allotment of 139,502,441 equity shares to eligible institutional buyers at an issue price of Rs 43.01 per share (including a premium of Rs 42.01). The price represents a 5% discount from the floor price of Rs 45.27 per share, as per SEBI's regulations.

Following the allotment, HCC's paid-up equity share capital has increased to Rs 181.94 crore, comprising 1,819,383,225 equity shares.

Key investors in the QIP include SBI General Insurance, which took 12.50% of the shares, Societe Generale-ODI with 11%, Citigroup Global Markets with 7.67%, and Leading Light Fund VCC - The Triumph Fund with 5%.

"We are gratified by the support of our investors and the trust they have placed in us. We remain steadfast in our commitment to quality, governance, and growth as HCC proudly enters its millennial year," said Arjun Dhawan, Vice Chairman of HCC.

This marks HCC's second fundraising initiative in 2024, following its successful rights issue in April, which raised approximately Rs 350 crore and was oversubscribed by 2.5 times. The proceeds from the QIP will be utilised to fund business growth, enhance working capital, and reduce debt. Motilal Oswal Investment Advisers and Elara Capital India managed the QIP offering, with Cyril Amarchand Mangaldas and Rajani Associates serving as legal advisors.

Shares of the company fell as much as 2.36% during the day but pared losses and rose 2.18%. The stock has risen 74.39% year-to-date and 74.27% over the past 12 months. The one analyst tracking the stock has a 'buy' rating on it, according to Bloomberg data.