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HUDCO slips as OFS begins; Govt proposes to sell up to 8% stake

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Capital Market
Last Updated : Jul 27 2021 | 3:31 PM IST

Housing & Urban Development Corporation (HUDCO) fell 3.71% to Rs 45.45 after the offer for sale (OFS) opened for non-retail investors today, 27 July 2021.

Through the OFS, the Government of India proposes to sell up to 11,01,04,500 equity shares (representing 5.5% stake), with an option to sell an additional 2.5% stake or 5,00,47,500 equity shares in case of oversubscription.

The floor price for the OFS is Rs 45 per equity share, at a 4.66% discount to HUDCO's closing price of Rs 47.20 recorded on the BSE on Monday, 27 July 2021.

The total OFS size (base size + green shoe) stands at 16,01,52,000 shares, representing 8% of outstanding equity shares of the company, the value of which (at floor price) aggregates to Rs 720.68 crore.

The Government of India held 89.81% stake in HUDCO as of 30 June 2021.

The OFS opened on Tuesday (27 July 2021) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Wednesday (28 July 2021). A total of 10% of the offer size is reserved for retail investors.

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As on 14:55 IST, the OFS received subscription for 15,09,36,425 shares. It was subscribed 152.32% on the base non-retail offer size of 9,90,94,050 shares and 104.72% on the total non-retail offer size (base size + green shoe) of 14,41,36,800 shares.

Government backed-HUDCO is a premier techno-financing public sector enterprise and is engaged in the field of housing and infrastructure development in India.

The company's consolidated net profit jumped 19.4% to Rs 526.28 crore on 6.4% fall in total income to Rs 1,777.85 crore in Q4 March 2021 over Q4 March 2020.

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First Published: Jul 27 2021 | 2:59 PM IST

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