Hindustan Construction Company (HCC) has announced a strategic board approval to raise up to ₹800 crore through the issuance of equity shares or related securities. Additionally, the company is increasing its authorized share capital from ₹300 crore to ₹400 crore to facilitate this capital expansion. These moves, approved during the meeting held on May 14, 2026, are aimed at strengthening the company’s financial position and supporting its future growth initiatives.
Strategic Capital Raising Plan
During the meeting held on May 14, 2026, the Board of Directors of Hindustan Construction Company approved plans to raise funds amounting to ₹800 crore. This capital infusion is intended to be achieved through various instruments, including qualified institutions placement, preferential allotment, or rights issues. The final structure of this issuance remains subject to necessary regulatory and shareholder approvals.
Expansion of Authorized Share Capital
To accommodate the proposed funding and future capital requirements, the Board has authorized an increase in the company’s Authorized Share Capital. The limit will be raised from the existing ₹300 crore to ₹400 crore. This adjustment involves:
- An increase in Equity Shares to 390 crore shares of ₹1 each.
- Retention of 1 crore Redeemable Preference Shares at ₹10 each.
This restructuring also requires a formal amendment to Clause V of the company’s Memorandum of Association, ensuring the company maintains the flexibility to manage its capital base effectively as it pursues its operational and strategic objectives.
Source: BSE
