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State-owned Housing and Urban Development Corporation (HUDCO) today said it has raised Rs 2,010 crore so far from an issue of tax-free bonds that started early this month.
The issue, which was launched on December 2 and closes on January 10, has been subscribed over four times from the basic size of Rs 500 crore and 82% of the total shelf-limit of Rs 2,439 crore.
The Finance Ministry allowed HUDCO to raise Rs 5,000 crore through bonds in 2013-14. The company raised Rs 190.8 crore in August via a private placement with institutional investors. Another Rs 2,370 crore was garnered from the first tranche of tax-free bonds launched in September.
"As of now, we have raised about Rs 2,010 crore so far. We have done well in the retail category," Hudco Chairman and Managing Director V P Baligar said.
Of Rs 2,010 crore raised so far, he said retail investors accounted for Rs 1,104 crore, high net worth individuals (HNIs) Rs 516 crore and institutional investors Rs 389 crore.
"Though last date of issue is January 10, we may close it early if the bonds issue is fully subscribed," Baligar said.
The size of the tax-free bond issue is fixed at Rs 500 crore, with an option to retain over-subscription of up to Rs 2,439.2 crore. The bonds are proposed to be listed on the BSE.
The funds will be used to finance the government's housing and urban infrastructure projects, working capital requirements, augmenting the company's resource base and other operational requirements.
For retail investors applying for bonds up to Rs 10 lakh, the coupon rate is 8.76% per annum for 10 years, 8.83% for 15 years and 9.01% for 20 years.
The bonds bear a coupon rate of 8.51% per annum for 10 years, 8.58% for 15 years and 8.76% for 20 years for qualified institutional buyers, corporates and high net worth individuals.
HUDCO is engaged in the financing and promotion of housing and urban infrastructure projects throughout India.
It posted a net profit of Rs 700 crore on revenue of Rs 2,923 crore during the previous financial year. It sanctioned projects worth Rs 23,000 crore and disbursed Rs 6,000 crore in last fiscal.
