HUDCO IPO subscribed 63% on Day 1

HUDCO to raise Rs 1,224 crore through IPO

State-owned Housing and Urban Development Corporation's (HUDCO) initial public offer (IPO) to raise Rs 1,224 crore was subscribed 63 per cent on the first day of the IPO on Monday.

The offer received bids for 129,136,800 shares against the total issue size of 204,058,747 shares, the National Stock Exchange (NSE) data showed.

The category reserved for qualified institutional buyers (QIBs) was subscribed 18 per cent and non institutional investors, 16 per cent.

Retail investors portions was oversubscribed 1.52 times.

HUDCO, a 'Miniratna' firm which provides loans for housing and urban infrastructure projects, will close the IPO on May 11 where the government is offering 204,058,747 shares for sale.

HUDCO has fixed the price band of Rs 56-60 per equity share.

The company has appointed IDBI Capital Markets, SBI Capital Markets, Nomura and ICICI Securities as the book running lead managers to the issue.

The shares of the company are proposed to be listed on BSE as well as NSE.

Out of total outstanding loan of Rs 36,385 crore as on December 31, 2016, HUDCO has financed 69 per cent to urban infrastructure projects and 31 per cent to the housing sector.