HCC Shares Slumped Over 2%: Launches QIP and Set Floor Price at ₹45.27

Hindustan Construction Company (HCC) announced the opening of its qualified institutional placement (QIP) on Monday, December 16, with a floor price of ₹45.27 per share. The decision was approved by the company’s board during its meeting on the same day.

As per reports, HCC has set a base issue size of ₹400 crore for its QIP, with a greenshoe option to increase the issue size to ₹600 crore. The issue price has been fixed at ₹43.01 per share, which represents an 8.4% discount to the current market price (CMP) and a 5% discount to the SEBI-mandated floor price.

Purpose of the QIP

The QIP aims to raise funds to meet HCC’s operational and financial requirements, including ongoing projects and debt repayment. The company is leveraging the QIP to strengthen its financial position and support its infrastructure development initiatives.

Final Issue Price and Trading Window

The final issue price will be determined based on investor response and regulatory guidelines, in consultation with the appointed book-running lead managers. The company also announced that the trading window will be closed immediately and will remain closed until December 21, 2024 (both days inclusive), for the purpose of the issue.

On December 17, 2024, HCC share price opened at ₹46.93 and touched the day high of ₹45.67 at 09:30 AM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.