Hindustan Construction Raises Rs 600 Crore Through QIP
This is the second fundraising for HCC after its successful rights issue of Rs 350 crore in April, which was oversubscribed by 2.5 times.
Hindustan Construction Co. raised Rs 600 crore as it successfully concluded its qualified institutional placement on Thursday, which saw a robust response, according to an exchange filing.
At a meeting, the board approved the allocation of 13.95 crore equity shares at an issue price of Rs 43 01 apiece, including a premium of Rs 42.01 apiece. The issue is at a discount of 5% to the floor price of Rs 45.27 for each equity share for QIP, which opened on Monday, it said.
The offering attracted a diverse pool of top-tier institutional investors with long-term outlooks, including global and domestic investors like SBI General Insurance, Citi Bank, BNP Paribas, Sriram Mutual Fund, Authum, Samsung Family Office, DE Shaw. This demonstrates "strong confidence" in HCC's strategic vision and future growth prospects, according to the filing.
"We are gratified by the support of our investors and the trust they have placed in us," Vice Chairperson Arjun Dhawan said. "We remain steadfast in our commitment to quality, governance and growth as HCC proudly enters its millennia! year."
This is the second fundraising for HCC after its successful rights issue of Rs 350 crore in April, which was oversubscribed by 2.5 times. The QIP proceeds will be primarily utilised for business growth, augmenting working capital and toward deleveraging.
Motilal Oswal lnvestment Advisers and Elara Capital India were appointed to manage the QIP offering. Cyril Amarchand Mangaldas and Rajani Associates were the legal advisers to the offering.
Shares of HCC closed 1.23% lower at Rs 44.09 apiece on the BSE, compared to a 1.2% decline in the benchmark Sensex.
