 "hudco")
Shares of Housing & Urban Development Corporation (HUDCO) rallied 13 per cent on the BSE to fresh highs of Rs 129.29 in Thursday’s intra-day trade after the company signed a financing pact with Gujarat govt for investment of Rs 14,500 crore.
In the past two days, the stock of the state-owned financial institution has surged 23 per cent. It has surpassed its previous high of Rs 119.55 touched on December 14.
The average trading volumes on the counter more than doubled today. A combined 104 million equity shares changed hands on the counter on the NSE and BSE till the first hour of trade.
It signed a Memorandum of Understanding (MoU) with the Gujarat government for financing housing and urban infrastructure projects in the state.
It expressed interest in executing the MoU under the financial services sector in the form of financial assistance. This is as per its guidelines for eligible sector projects through term loan for Infrastructure projects.
HUDCO is a techno-financial institution in the business of providing financial assistance for housing and urban development projects in the country.
Since November 1, the stock price of HUDCO has zoomed 74 per cent after Moody's Investors Service affirmed the Baa3 local- and foreign-currency issuer ratings of the company.
Moody's maintained a stable outlook, reflecting its expectation that the company's credit fundamentals will be stable and that it will continue to receive strong support from the govt (Baa3 stable) when needed.
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HUDCO plays an important role of providing financing to housing and urban development programs in India and has signed a MoU with the Ministry of Housing and Urban Affairs that outlines the company’s annual performance targets.
Like other non-deposit-taking finance companies, HUDCO has high reliance on wholesale funding.
This is mitigated by its strong access to funding from banks and bond markets because of its government linkage.
The company holds modest on-balance-sheet liquidity. But good assetiability maturities matching and access to undrawn credit lines from commercial banks support the company's liquidity, Moody’s said in its ratings rationale.
