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Rights issue adjustment triggers sharp fall in HCC stock, raising questions for investors
HCC shares slid about 9 percent after adjusting for its 1,000 crore rupees rights issue, with the stock reacting to dilution concerns and revised valuation levels.
Share price movement in Hindustan Construction Company reflected sharp volatility after the stock adjusted to its recently announced rights issue. The stock, which closed at 25.94 rupees on Thursday, opened sharply lower at 19.99 rupees on December 5 and finally settled near 19.91 rupees, translating into an actual decline of about 9 percent for the session. The apparent deeper fall was due to price adjustment linked to the 1,000 crore rupees rights issue.