Life Insurance Corporation of India (LIC) purchased 7.38 crore equity shares or 3.69% stake of Housing Urban Development Corporation.
Post transaction, LIC has increased its stake in HUDCO to 5.22% from 1.53% held earlier. The deal was executed as part of offer for sale (OFS).
Housing & Urban Development Corporation (HUDCO) concluded its offer for sale (OFS) on Wednesday, 28 July 2021. Through the OFS, the Government of India initially proposed to sell up to 11,01,04,500 equity shares (representing 5.5% stake). The Government held 89.81% stake in HUDCO as of 30 June 2021.
The floor price for the OFS was set at 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 OFS opened on Tuesday (27 July 2021) for non-retail investors, while both retail as well as non-retail investors were allowed to subscribe on Wednesday (28 July 2021). A total of 10% of the offer size is reserved for retail investors. On Tuesday (T day), the OFS received subscription for 19,40,90,506 shares or 195.86% against the base non-retail offer size of 9,90,94,050 shares.
Following the strong response on T day, the government decided to exercise the oversubscription option of 5,00,47,500 shares (2.5% equity) in addition to the base offer. Accordingly, the final share sale was 16,01,52,000 shares, constituting 8% of the paid-up equity share capital of HUDCO. As on 15:30 IST on Wednesday (T+1 day), the OFS received total bids for 4,63,90,996 shares or 289.67% of the enhanced total retail offer size of 1,60,15,200 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.
Shares of HUDCO were trading 0.55% at Rs 45.45 on BSE.
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