Hindustan Construction launches QIP issue, sets floor price at ₹45.27/share – CNBC TV18

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. The decision was approved by the company’s board during its meeting on Monday.

The QIP aims to raise funds to meet operational and financial requirements, including ongoing projects and debt repayment. The company also stated that it may offer a discount of up to 5% on the floor price to eligible investors, as permitted under applicable regulations.

HCC is leveraging the QIP mechanism to strengthen its financial position and support its infrastructure development projects. The final issue price will be determined based on investor response and regulatory guidelines.

“The Issue price will be determined by the Company in consultation with the Book Running Lead Managers appointed for the Issue. Please note that the trading window will be closed with immediate effect till December 21, 2024(both days inclusive) for the purpose of the Issue,” it added.

The board’s outcome was announced post-market hours, with HCC shares closing at ₹46.95 today, up by ₹0.88 (1.91%) on the BSE.

Separately, recycling player Gravita India Ltd also launched a ₹750-crore QIP on Monday, with the option to upsize the issue.

Also read: CNBC-TV18 Newsbreak Confirmed: Gravita India launches ₹750 crore QIP with option to upsize

The indicative issue price is ₹2,096.2 per share, representing a 6.1% discount to the closing price and a 5% discount to SEBI’s floor price. The offering will result in an equity dilution of 5.2%.