Hudco IPO subscribed 63% on day 1

Hudco IPO seeking to raise Rs1,224 crore opened for subscription today and will close on 11 May

Swaraj Singh Dhanjal
Updated9 May 2017, 01:10 AM IST
HUDCO has fixed the price band of Rs 56-60 per equity share. Photo: iStock
HUDCO has fixed the price band of Rs 56-60 per equity share. Photo: iStock

Mumbai: State-owned Housing and Urban Development Corp. Ltd (Hudco) on Monday saw its initial public offering subscribed 63%, according to data from stock exchanges. The share sale closes on 11 May.

As of 5 pm on Monday, the portion of shares reserved for institutional investors was subscribed 18%, while the portions reserved for high net-worth individuals and retail investors were subscribed 16% and 152%, respectively.

Hudco has set a price band of Rs56-60 per share for the IPO. The IPO comprises an offer for sale of 200.19 million shares by the central government, which, at the upper end of the price band, could fetch it Rs1,201.1 crore.

The Hudco IPO is a pure offer for sale which will see the government sell a 10% stake in the company. Hudco will not receive any proceeds from the sale of shares.

IDBI Capital Markets and Securities Ltd, ICICI Securities Ltd, Nomura Financial Advisory and Securities (India) Pvt. Ltd and SBI Capital Markets Ltd are managing the initial share sale.

State-owned Hudco has been providing loans for housing and urban infrastructure projects in India for more than 46 years. The company, which provides housing loans across three categories— social housing, residential real estate and retail finance—has been conferred the Miniratna status by the government of India.

Hudco’s total outstanding loan portfolio as of 31 December was Rs36,385.8 crore, comprising 30.86% of housing finance loans and 69.14% of urban infrastructure finance loans and project-linked bonds.

On the urban infra side, Hudco lends for projects relating to water supply; roads and transport, which includes railways and ports; power; emerging sectors, which includes special economic zones, industrial infrastructure, gas pipelines, oil terminals and telecom sector projects; commercial infrastructure and others, which includes shopping centres, market complexes, malls-cum-multiplexes, hotels and office buildings.

According to its red herring prospectus, it had revenue of Rs3,350 crore in 2015-16, compared with Rs3,427.8 crore in the previous year. In 2015-16, the company reported a profit of Rs810.6 crore, compared with Rs768.3 crore in the previous year.

The Hudco IPO will be the first initial share sale by a government-owned entity this year. The Union government, which is chasing a target of raising Rs72,500 crore through various divestment routes, has rolled out programmes for listing of various state-owned enterprises such as New India Assurance Co. Ltd, General Insurance Corp. of India Ltd, Rail Vikas Nigam Ltd, IRCON International Ltd, Indian Railway Finance Corp. Ltd, Indian Railway Catering and Tourism Corp. Ltd (IRCTC), RITES Ltd and others.

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$1 B

2 Hrs

19.50 L

250 MTPA

₹18.05 Cr

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First Published:9 May 2017, 01:10 AM IST
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