Hindustan Construction Company (HCC) announced the opening of its Qualified Institutional Placement (QIP) issue on Monday, December 16, with a floor price of ₹45.27 per share. According to sources, the company has set a base issue size of ₹400 crore, with a greenshoe option to scale it up to ₹600 crore.
The issue price for the QIP has been set at ₹43.01 per share, reflecting an 8.4% discount to the current market price and a 5% discount to the SEBI-mandated floor price. The funds raised will be used to meet operational and financial requirements, including debt repayment and ongoing infrastructure development projects.
HCC shares reacted to the news, closing 2% lower at ₹46.95 per share on Monday.
The final issue price for the QIP will be determined based on investor response and consultation with the Book Running Lead Managers. Additionally, HCC has announced that the trading window will remain closed till December 21, 2024.
The QIP initiative comes as part of HCC’s efforts to strengthen its financial position and ensure smooth execution of its ongoing projects.
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