The Hindustan Construction Company (HCC) stock has made considerable gains during the last three trading sessions after the infrastructure developer raised Rs 497.6 crore through a rights issue on December 27.
The small cap stock has logged 30.59% gains during the period taking into account today's intra day high of 14.29 on the BSE. On December 28, the stock stood at 10.95 level.
The stock has lost 63.04% during the last one year. Currently, the stock is trading 5.89% higher at 14.02 level on the BSE.
The stock is trading above its 50 day and 200 day moving average of 11.68 and 12.34 level.
The rights issue was oversubscribed with HCC getting applications worth Rs 551.38 crore for sale through which it would issue up to 49.75 crore equity shares, the company said.
With this, the paid-up equity capital of the company will go up Rs 151.30 crore from Rs 101.55 crore while the promoters' shareholding will increase to 33.12 percent from 27.80 percent now.
ICICI Securities was the lead manager to the issue.
On September 5, the HCC board approved the issue of equity shares by way of a rights issue to the existing shareholders of the company as on the record date for an amount not exceeding Rs 500 crore.
A rights offering is a group of rights offered to existing shareholders to purchase additional stock shares, known as subscription warrants, in proportion to their existing holdings.
Rights are often transferable, allowing the holder to sell them in the open market.
Hindustan Construction Company is engaged in engineering and construction activities. The company's segments include engineering and construction, infrastructure, real estate, comprehensive urban development and management, and others. The company provides engineering and construction services for projects across sectors, such as power, transportation, water and industrial projects.
Its operations include construction of dams, barrages, tunnels, underground power stations and surface power stations, along with water conductor systems, such as surge shafts, pressure shafts and penstocks. The HCC Group, with a group turnover of Rs 10,132 crore, comprises HCC Ltd, HCC Infrastructure Co Ltd and Steiner AG in Switzerland.
In a separate development, PM Narendra Modi inaugurated India's longest rail-cum-road Bogibeel bridge, on December 25 last week.
The prime minister opened the 4.94-km-long double-decker strategic bridge, built by HCC, over the Brahmaputra river at Bogibeel near Dibrugarh in Assam.
This is the country's first fully welded steel bridge and the world's longest incrementally launched steel bridge, infrastructure major HCC said.
Edited by Aseem Thapliyal