HCC reduces corporate guarantee, opens rights issue

Hindustan Construction Company (HCC) has reduced the amount of money it promised to cover for its associate company, PRPL, by Rs 3,364 crore.

This means HCC is now responsible for a much smaller amount if PRPL can't pay its debts.

HCC also announced that it will raise Rs 1,000 crore by selling new shares to its existing shareholders.

This is called a rights issue.

The company hopes these moves will make it stronger financially and help it grow in the future.

After the announcement, HCC's share price went up by 4% the previous day, but it dropped by 6% on the day the rights issue opened.

The stock has been going down a lot over the past month and is now much lower than its highest price in the past year.