5 March, 2019
Cyril Amarchand Mangaldas advised Hindustan Construction Company Limited (HCC) and ICICI Securities Limited (ICICI Securities) in relation to the recent Rights Issue of HCC. The Issue is one of the few instances in the recent past of capital raising by a company operating in the infrastructure space.
The Capital Markets Team of Cyril Amarchand Mangaldas acted as the legal advisor as to Indian law to the HCC Rights Issue. The Capital Markets Team was led by Yash J. Ashar, Partner & Head – Capital Markets; and Abhinav Kumar, Partner;with support from S. Vivek, Principal Associate; Roshni Bhalla, Associate; Tania Chourasia, Associate; and Tanvi Priya, Associate.
As a part of the Transaction, up to 49,75,76,833 equity shares of HCC were offered for cash, at a price of INR 10 per equity share (with face value of INR 1 and a premium of INR 9 per share), for an aggregate amount not exceeding INR 497.58 crores on a rights basis to the eligible equity shareholders of HCC, in the ratio of 49 equity shares for every 100 fully paid-up equity shares as on the record date.
Other parties and advisors involved in the transaction were ICICI Securities Limited (Lead Manager to the Issue) and Walker Chandiok & Co., LLP, Chartered Accountants (Statutory auditors of HCC).
The Issue opened for subscription on 3 December, 2018, and closed on 17 December, 2018. The shares were allotted on 27 December, 2018, and were listed on 31 December, 2018.
