Hindustan Construction Company (HCC), has witnessed a sharp decline of 16% over 4 consecutive sessions, driven by a trading volume inquiry from the exchanges. The drop comes just before the launch of its rights issue worth about ₹1,000 crore.
HCC shares dropped from ₹25.94 on December 4, 2025, to open at ₹19.99 on December 5, and closed slightly lower at ₹19.90. This near 9% decline followed a technical price adjustment aligned with the upcoming rights issue. Despite the apparent larger drop from the previous close, the stock adjustment considers the discounted price offered in the rights issue.
HCC shares fell about 10% on December 8, 2025, extending their slide for the 4th consecutive trading session. This brought the overall decline during the 4-day period, beginning December 3, 2025, to 16%. The downturn started after the stock rose 10.5% on December 3, which led the stock exchanges to seek clarification for the sudden burst in trading activity.
In its response, the company confirmed that all price movements were market-driven and stated that there were no undisclosed or pending announcements. Despite this clarification, the stock continued to trend downward in subsequent sessions.
HCC’s board approved a ₹999.99 crore rights issue on December 1, 2025. The issue will open on December 12, 2025, and close on December 22, 2025. The record date was fixed as December 5, 2025. The issue involves 79,99,91,900 equity shares at ₹12.5 per share, inclusive of a ₹11.5 premium.
The entitlement ratio is 277 rights shares for every 630 shares held. Once complete, the company’s equity base will expand from 181 crore shares to 261 crore shares.
Investors must note that December 17 is the cutoff for on-market renunciation and December 19 for off-market renunciation. Applications submitted cannot be withdrawn.
As of December 08, 2025, at 1:55 PM, Hindustan Construction share price on NSE was trading at ₹17.96 down by 9.75% from the previous closing price.
The stock touched an intra-day low of ₹17.75. This marks a decline of over 53% from its 52-week high of ₹40.23 in December 2024 and it is currently trading close to its 52-week low of ₹17.97 in April 2025. The stock has slipped 60% over 1 year, 46% in 6 months, 35% in 3 months, and 29% in 1 month.
Despite recent selling pressure, HCC has yielded 163% returns over the past 5 years.
Read More: HCC Launches ₹1,000 Crore Rights Issue at 48% Discount: Key Dates and Investor Eligibility!
Hindustan Construction Company shares witnessed a sharp decline after an exchange query related to high trading volume, even as it prepares for a ₹1,000 crore rights issue. Short-term volatility has impacted stock performance, though long-term returns remain positive.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Dec 8, 2025, 2:41 PM IST
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