Hindustan Construction Company Ltd (HCC) submitted the Monitoring Agency Reports for the quarter ended December 31, 2025, concerning its Qualified Institutions Placement (QIP) and Rights Issue. The QIP funds of Rs. 600 crores are now fully utilized, primarily for loan repayment. The Rights Issue proceeds of Rs. 999.99 crores are substantially deployed, with the remaining unutilized balance placed in short-term instruments pending final deployment.
HCC Monitoring Agency Submissions for Q3 FY26
Hindustan Construction Company Ltd (HCC) has submitted the requisite Monitoring Agency Reports to the stock exchanges for the quarter ended December 31, 2025 (Q3FY26). These reports cover the utilization of funds raised through the earlier Qualified Institutions Placement (QIP) and the Rights Issue.
QIP Proceeds Utilization (Rs. 600 Crore)
The Monitoring Agency confirmed that the QIP proceeds amounting to Rs. 600 crores have been fully utilized in line with the disclosed objects. Specifically, Rs. 200 crores were utilized during the quarter towards the repayment of loans, completing the utilization of the funds raised through the QIP.
Cost Structure of QIP Objects
The original allocation of the Rs. 600.00 crore proceeds was as follows:
- Repayment of outstanding borrowings: Rs. 390.00 crore (Fully utilized).
- Augmenting working capital: Rs. 150.00 crore (Revised utilization: Rs. 22.86 crore).
- General Corporate Purposes (GCP): Rs. 22.86 crore (Revised utilization: Rs. 26.88 crore).
- Issue Expenses: Rs. 37.14 crore (Revised utilization: Rs. 33.12 crore).
The Monitoring Agency noted that a minor surplus from Issue Expenses (Rs. 4.02 crore) was reallocated to General Corporate Purposes during Q1FY26, aligning with the placement document.
Rights Issue Proceeds Monitoring (Rs. 999.99 Crore)
For the Rights Issue, the company utilized approximately Rs. 503.65 crores of the Rs. 999.99 crore raised, with an unutilized balance of Rs. 496.34 crores as of December 31, 2025.
Deployment of Rights Issue Funds
Key deployment highlights during Q3FY26:
- Repayment of borrowings (Company): Rs. 200.00 crore was utilized during the quarter, contributing to the total utilization of Rs. 300.59 crore against the proposed Rs. 625.00 crore.
- Investment in JV (Prolific Resolution): Rs. 200.00 crore was utilized during the quarter, completing the utilization of the proposed Rs. 200.00 crore object.
- Augmenting Working Capital: Rs. 3.06 crore was utilized during the quarter, bringing the total utilized to Rs. 3.06 crore against the proposed Rs. 100.00 crore.
Unutilized Proceeds Deployment (Rights Issue)
The unutilized proceeds of Rs. 496.34 crores (as of the end of the quarter) have been parked in short-term instruments:
The unutilized balance includes Rs. 324.41 crore against the repayment object, which is expected to be spent by March 2026. The remaining funds are held in fixed deposits with ICICI Bank (Rs. 150.00 crore) and an Allotment Account (Rs. 39.99 crore).
Implementation Timelines
The Monitoring Agency noted the status of the objects against their proposed completion dates:
- Repayment of Borrowings: Actual utilization of Rs. 300.59 crore occurred within a delay of 8 months compared to the original FY25 target.
- General Corporate Purposes: Utilization was completed within 3 months of the proposed FY25 target.
Source: BSE
