HCC.NS Stock Today, December 22: Fully Subscribed ₹1,000 Crore Rights Issue Sparks 10% Jump
HCC share price rallied after investors fully subscribed the company’s ₹1,000 crore rights issue on the final day. Shares of HCC.NS traded around ₹19.88, up 10.38%, with strong volumes. The offer price of ₹12.50 came at a steep discount to the market, drawing bids for 130 crore shares against 80 crore on offer. Combined with a recent Railways contract, sentiment improved into year-end. We break down price action, technical levels, fundamentals, and what to watch next for Hindustan Construction shares.
Rights issue turns sentiment positive
The ₹1,000 crore HCC rights issue closed fully subscribed, with bids for 130 crore shares versus 80 crore on offer at ₹12.50 per share. The discount to the market price supported demand and narrowed concerns about funding growth. This triggered a sharp move in the stock and strong turnover. For context on the market reaction, see this report from CNBC-TV18: HCC shares jump 10%….
An equity raise avoids new debt on the balance sheet, which can ease leverage pressure over time. It can also support working capital and execution on ongoing projects. While actual metrics will update post-allotment, investors typically view equity-funded growth as lower risk than borrowing. That shift helped the HCC share price, as the market priced in better financial flexibility and improved visibility for FY26 project delivery.
Price action and technical levels to track
HCC stock today traded at ₹19.88, up 10.38%, after opening at ₹18.90. The day’s range was ₹18.80 to ₹20.70. Volume hit 10.83 crore shares versus a 2.28 crore average, a notable expansion that confirms broad participation. The stock’s 52-week range stands at ₹16.92 to ₹45.01. Such activity often follows capital events, and it can set the tone for short-term momentum in Hindustan Construction shares.
RSI sits at 33.38, near oversold territory, while ADX at 34.21 indicates a strong trend. MACD at -2.17 remains below its signal at -2.00, so confirmation may need further strength. Price trades below the 50-DMA at ₹24.41 and the 200-DMA at ₹27.15, making these key hurdles. Traders will watch if the HCC share price can reclaim the mid-Bollinger band near ₹21.15 on sustained volume.
ATR at 1.41 signals elevated intraday swings. Immediate support zones appear near the Keltner lower band at ₹17.78 and the Bollinger lower band at ₹14.56. On the upside, the mid-band at ₹21.15 and the upper band at ₹27.73 act as resistance areas. With Stochastic %K at 9.74, a rebound is possible, but follow-through above ₹21 would strengthen the near-term setup for HCC stock today.
Fundamentals and valuation context
Pre-issue metrics show a current ratio of 1.03, debt-to-equity at 1.47, and interest coverage of 1.48. Net debt to EBITDA stands at 0.86, indicating manageable leverage. An equity raise can improve these ratios on the margin by boosting equity and liquidity. Investors will watch post-issue updates to see if improved working capital conversion supports cash flow stability for Hindustan Construction shares.
Valuation screens as moderate relative to sales, with price-to-sales at 0.77 and EV-to-sales at 1.03. Price-to-book is 3.09, reflecting expectations of project execution and order inflows. The EBITDA multiple near 3.42 suggests earnings sensitivity to utilization and margins. If execution improves, these metrics can compress further, but sustained receivables reduction will be important for a durable rerating of the HCC share price.
What could drive the next move
A recent Railways contract win helped extend the rally earlier this week, reinforcing confidence in the order pipeline and execution prospects. Delivery timelines and margin capture on such awards will be key into Q4. For background on the contract-led momentum, see The Economic Times: HCC shares surge after securing major Railways contract.
Next earnings are scheduled for 5 February 2026. Near term, investors will track rights share allotment and listing, cash collection trends, and any new project announcements. Technically, holding above ₹18 and clearing ₹21 could keep buyers interested. Macro triggers include government infra spending updates, Railways capex signals, and liquidity conditions in domestic equities.
Final Thoughts
The full subscription of the ₹1,000 crore issue lifted confidence and drove a strong rebound in the HCC share price. Today’s move came with heavy volume, but the stock still trades below the 50-DMA and 200-DMA. That makes ₹21 a pivotal level, with ₹18 as near support. Fundamentally, equity funding reduces reliance on debt and can ease leverage concerns, while recent order momentum supports the pipeline. We suggest tracking allotment updates, collection efficiency, and any fresh contracts over the next few weeks. Traders can use ATR-informed stops and band levels, while long-term investors can reassess after post-issue financials confirm balance sheet improvements. This is not investment advice; do your own research.
FAQs
The stock rose about 10% after the ₹1,000 crore rights issue closed fully subscribed. Investors bid for 130 crore shares against 80 crore on offer at ₹12.50, a clear discount to the market. The strong demand signaled confidence in equity funding without adding debt. Volume spiked to about 10.83 crore shares versus a 2.28 crore average, confirming broad participation. Positive sentiment from a recent Railways contract also supported the move.
The rights shares were priced at ₹12.50 each. According to today’s updates, the issue closed fully subscribed on the final day. Since the window has closed, new applications are not possible. Investors who applied should watch for the allotment notice, credit of rights shares to demat, and listing. Timelines vary by issue, but allotment and credit typically occur within days after closure, followed by trading commencement in due course.
It depends on your risk profile. Price sits below the 50-DMA at ₹24.41 and the 200-DMA at ₹27.15, so medium-term trend is still weak. Near term, clearing ₹21 on closing basis would improve momentum, while ₹18 looks like initial support. RSI is 33.38 and Stochastic is very low, hinting at potential rebound, but MACD remains negative. Consider position sizing, ATR-based stops, and wait for confirmation if you prefer trend-following setups.
Execution risk on large projects, high receivables, and leverage remain watchpoints. Days sales outstanding sits at about 344 days, which can pressure cash flows. Debt-to-equity is 1.47 and interest coverage is 1.48, leaving less room if collections slow. While the equity raise helps, sustained improvement in working capital and margin discipline will be crucial. Any delays in project milestones or slower inflows could cap upside in the near term.
Watch ₹21 as near resistance and ₹18 as near support. The mid-Bollinger band is around ₹21.15, while the lower Keltner band sits near ₹17.78, and the lower Bollinger band near ₹14.56. ATR at 1.41 suggests wider daily swings, so position sizes should reflect volatility. A move above ₹21 with volume could target the ₹24 zone near the 50-DMA. A close below ₹18 raises risk of a retest of lower bands.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
