HCC Shares “Crash” 23% Overnight – Don’t Panic, It’s Just the ₹1,000-cr Rights Issue Adjustment

ction Company (HCC) gave investors a mini heart-attack on Friday morning when the stock opened at ₹19.99, down a brutal 23% from Thursday’s close of ₹25.94. By the end of the day, the real picture emerged: after adjusting for the rights issue, the stock actually fell only ~9%, closing at ₹19.91. What Really Happened? The Rights Issue Adjustment Explained On December 5 (the record date), HCC shares went ex-rights, meaning the stock price was theoretically adjusted downward to reflect the discounted rights shares being offered to existing shareholders. Key Details of the HCC ₹1,000-cr Rights Issue Issue size: Up to ₹1,000 crore Issue price: ₹12.50 per share (face value ₹1 + premium ₹11.50) Rights entitlement: 277 rights shares for every 630 fully paid-up shares held (Simplified: ~44 rights shares for every 100 shares you own) Issue opens: December 12, 2025 Issue closes: December 22, 2025 Record date: December 5, 2025 Why Did the Stock Fall 23% Theoretically? This is a standard “theoretical ex-rights price” (TERP) adjustment. Rough calculation of the adjustment: Pre-rights shares held: 630 New rights shares added: 277 at ₹12.50 each Total shares post-rights: 907 Total cost: (630 × ₹25.94) + (277 × ₹12.50) ≈ ₹19,662 Fair value per share post-rights ≈ ₹19.662 (very close to Friday’s actual adjusted price) So the sharp 23% drop you saw on the chart is purely mechanical – the market simply repriced the stock to reflect the cheap new shares coming in.