 "hudco")
The Rs 1,100-crore offer for sale (OFS) in Housing Urban Development Corporation (Hudco) was 95 per cent covered on Wednesday.
The share sale received bids for about 133.6 million shares from institutional investors against a total of 140 million on offer. About 14 million shares reserved for retail investors will be auctioned on Thursday.
Most of the bids came around the floor price of Rs 79 per share. Shares of Hudco plunged 11 per cent in the secondary market trading. The stock closed at Rs 80.1 compared to the previous day’s close of Rs 90. Through the OFS, the government is looking to offload a 7 per cent stake. If the OFS garners full subscription, the government’s stake in Hudco will decline to 74.81 per cent.
Hudco is a provider of long-term finance for housing and urban infrastructure development projects. In July 2021, the government divested 8 per cent stake in Hudco at Rs 45 per share to raise Rs 720 crore. Even with the latest correction, shares of Hudco are up about 50 per cent this calendar year.
Hudco is a provider of long-term finance for housing and urban infrastructure development projects. In July 2021, the government divested 8 per cent stake in Hudco at Rs 45 per share to raise Rs 720 crore. Even with the latest correction, shares of Hudco are up about 50 per cent this calendar year.
Hudco’s OFS will be the fourth OFS in this financial year by the government after Coal India (Rs 4,186 crore), RVNL (Rs 1,366 crore) and SJVN (Rs 1,350 crore).
