HCC’s board intends to issue 79.99 crore rights equity shares, which will be used to raise the ₹1,000 crore.’
Price of the rights issue is ₹12.5 per share, which is a 34% discount to HCC’s closing price on Thursday.Rights issue is generally a fund raising method for a company where it issues shares at a discount to the current price to raise an amount, without increasing the debt burden of the company.
Eligible shareholders of HCC will be entitled to 277 rights equity shares for every 630 fully paid-up equity shares held as on the record date.Those shareholders, who had shares of HCC in their demat account as of last Thursday’s closing, which was December 4, will be eligible to participate in the rights issue.
Wednesday, December 17, will be the final day for on-market renunciations for existing HCC shareholders, while December 19 will be the final day for off-market renunciations.
On-market renunciations are where existing shareholders sell their rights in the open market to interested buyers at a specified price.
After the rights issue, the total number of outstanding shares for HCC will increase to 261 crore from 181 crore prior to the rights issue.
Shares of HCC ended 3.5% higher on Thursday at ₹18.85.
