Multibagger small-cap stock HCC share price falls 20% in 4 sessions - here's why

HCC share price: Multibagger small-cap stock under ₹50, Hindustan Construction Company (HCC), crashed 11% in intra-day trade on Monday, December 8, marking its fourth straight session of losses. Since December 3, the scrip has declined 20.5% overall. The stock ended 7.58% lower at ₹18.42.
The correction began after the Exchange sought a clarification from Hindustan Construction Company Ltd on December 3, 2025, over unusual movement in trading volumes. The stock had jumped 10.5% earlier that day.
In its response, the company stated, "We are in receipt of your email on December 3, 2025, seeking response for significant increase in the volume of security of our Company across Exchanges. In this regard, we wish to clarify that the Company has always made timely disclosures to the Exchanges of all the events / informations pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The significant increase in the volume of security of our Company across Exchanges is purely market driven. We further confirm that, there is no pending announcements / disclosures / events or information which is required to be reported. In case of occurrence of any such event, the same shall be informed to the Exchanges in accordance with the applicable SEBI Regulations."
Despite this clarification, the stock has continued trending downward. The rise on December 3 had come shortly after the company formally approved the ₹1,000 crore rights issue and announced December 5 as the record date for the same.
HCC Rights Issue: Key Details
The company’s board formally approved the ₹1,000 crore rights issue at its meeting on December 1, 2025. According to the filing, the offering will open on Friday, December 12, 2025, and close on Monday, December 22, 2025. The company had fixed December 5 as the record date for the rights issue.
For investors looking to transfer their rights entitlement, the company clarified that December 17 will serve as the cutoff date for on-market renunciations, while December 19 will be the deadline for off-market renunciations.
The rights issue will comprise 79,99,91,900 equity shares, amounting to ₹999.99 crore at an issue price of ₹12.5 per share. This pricing incorporates a premium of ₹11.5 for each rights share, payable upon application.
The entitlement ratio has been set at 277 rights shares for every 630 shares held, ensuring shareholders receive allocation in proportion to their existing holdings.
Once the issue concludes, HCC’s outstanding share count will rise from 181 crore to 261 crore, resulting in a significant expansion of the company’s equity base. The board has the discretion to extend the offer period if needed; however, the total duration cannot exceed 30 days from the opening date. The company also noted that applications cannot be withdrawn once they have been submitted.
HCC Share Price Performance
HCC shares slipped to an intra-day low of ₹17.77, marking a 10.8% decline and extending losses for the fourth straight session. The stock ended 7.58% lower at ₹18.42.
The small-cap stock has fallen 20.5% across these four days. It now trades more than 53% below its 52-week high of ₹40.23 reached in December 2024, after having touched a 52-week low of ₹17.97 in April 2025.
The broader trend continues to signal persistent weakness, with the stock down 60% over the past year, lower by 46% in the last six months, 35% in the past three months, and declining 29% over the last month.
Despite this, the long-term performance remains robust—HCC has delivered multibagger returns of 163% over the past five years, rewarding long-term investors even amid recent volatility.