Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on December 11, 2025
- This is the third RI from the company since November 2018. Last RI was in March 2024.
• The company is engaged in engineering, construction and infrastructure development under one roof.
• It has marquee customers with major work from PSUs and Government agencies.
• It had an order book worth Rs. 13152 cr. as of September 30, 2025.
• It marked inconsistency in its top and bottom lines for the reported periods.
• Well-informed investors may park funds for long term.
ABOUT COMPANY:
Hindustan Construction Co. Ltd. (HCCL) is one of the oldest engineering and construction companies in India, engaged in construction activities which include roads, bridges, ports, railway tunnels, metro projects, power stations, water supply and irrigation projects. HCC was incorporated as ‘The Hindustan Construction Company Limited” on January 27, 1926 under the Indian Companies Act, 1913, in Mumbai, Maharashtra, and the name was subsequently changed to ‘Hindustan Construction Company Limited’ with effect from October 11, 1991. Over the last nine decades, HCC has transformed from a construction company into a global and diversified infrastructure group. In addition, its Material Subsidiaries, HCC Infrastructure Company Limited and H56 Immo AG are engaged in the infrastructure and claims realization business respectively.
As of March 31, 2025, HCC has 910 permanent employees on its payroll and deploys 6,864 workers. It conducts business operations primarily through three verticals, namely, (i) engineering and construction; (ii) infrastructure development; and (iii) real estate construction, as a single operating segment of engineering and construction. While the engineering and construction business is undertaken directly by the Company, the remaining business verticals are undertaken by its Subsidiaries.
HCC has a robust clientele comprising various Central Government and State Government agencies such as the National Highway Authority of India (“NHAI”), National Hydroelectric Project Corporation (“NHPC”), IRCON International Limited (“IRCON”), Ministry of Road Transport and Highways (“MoRTH”), Tehri Hydro Development Corporation India Limited (“THDCIL”), Nuclear Power Corporation of India Limited (“NPCIL”), Government of Andhra Pradesh (Public Works Department) (“GoAP-PWD”) and Delhi Metro Rail Corporation Limited (“DMRC”). Through its engineering and construction services along with its client-centric approach, HCC endeavors to strengthens India’s infrastructure development by providing quality construction services on a sustainable basis in order to improve connectivity, establish infrastructure and enhance economic development. In the last three and half fiscal years, it has completed 23 projects across the engineering, construction, and infrastructure development verticals with a cumulative executed value of Rs. 14211 cr. As of September 30, 2025, it had a total order book of Rs. 13152 crores.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 799991900 equity shares of Re. 1 each at a fixed price of Rs. 12.50 per share to mobilize Rs. 999.99 cr. The RI opens for subscription on December 12, 2025, and will close on December 22, 2025. The company is offering RI in the ratio of 277 for 630 to its eligible stakeholders as of the record date of December 05, 2025. The company is asking for full money on application for the number of shares applied. Post allotment, RI shares will be listed on BSE and NSE. The company is spending Rs. 39.45 cr. for this RI process, and from the net proceeds, it will utilize Rs. 625.00 cr. for repayment/prepayment of certain borrowings, Rs. 200.00 cr. investment in joint venture – Prolific Resolution Pvt. Ltd., Rs. 100.00 cr. for working capital, and Rs. 35.54 cr. for general corporate purposes.
The RI is solely lead managed by the company itself., and MUFG Intime India Pvt. Ltd. is the registrar to the issue. Elara Capital (India) Pvt. Ltd. is the advisor to the issue.
Post-RI, company’s current paid-up equity capital of Rs. 181.95 cr. will stand enhanced to Rs. 261.95 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 3274.34 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has (on a consolidated basis) posted total income / net profit, of Rs. 7006.71 cr. / Rs. 478.16 cr. (FY24), Rs. 5603.37 cr. / Rs. 112.63 cr. (FY25). For H1 of FY26 ended on September 30, 2025, it earned a net profit of Rs. 98.51 cr. on a total income of Rs. 2052.07 cr. Its NAV stood at Rs. 5.79 as of September 30, 2025. Declining trends for top and bottom lines raises concern.
DIVIDEND POLICY:
The company has not given any dividends since June 2011. It will adopt a prudent dividend policy, based on its financial performance and future prospects. The offer document is silent on its dividend policy.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 500185 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 25.99 on December 04, 2025, and opened on an ex-right basis at Rs. 20.00 on December 05, 2025. Since then, it has marked a high/low of Rs. 20.94 / Rs. 17.75. The scrip last closed at Rs. 18.89 as of December 11, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 40.23 / Rs. 17.75.
The promoters’ holding stood constant around 16.71% for the three quarters ended as of September 30, 2025.The counter is trading above the RI price, with well managed volume by the vested interest quarters.
NOTE: Our family has small long term holding and planning to invest in the RI for eligible number of shares.
Conclusion / Investment Strategy
This is the third RI from the company since November 2018. Last RI was in March 2024. HCCL is engaged in engineering, construction and infrastructure development under one roof. It has marquee customers with major share from PSUs and Government agencies. It had an order book worth Rs. 13152 cr. as of September 30, 2025. It marked inconsistency in its top and bottom lines for the reported periods. Well-informed investors may park funds for long term.
Review By Dilip Davda on December 11, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
