State-run Housing and Urban Development Corporation (HUDCO) has decided to launch its initial public offering on May 8 and set a price band at Rs 56-60 per share. The company aims to raise Rs 1,121 crore at the lower end of price band and Rs 1,201.1 crore at a higher end of the price band.

The IPO comprised sale of 20 crore equity shares (10 percent paid-up capital) by the central government through an offer for sale (OFS).

Ravi Kanth Medithi, CMD & Rakesh Kumar Arora, Director-Finance, HUDCO in an interview to CNBC-TV18 spoke about their future plans, disbursements and loan book growth.

Medithi said the loan book as on December 2016 stood at Rs 37000 crore and the Year on Year disbursement growth was around 7-10 percent, said

According to him, with the government's focus on housing for all and Pradhan Mantri Awas Yogna will help drive growth in disbursements going forward.

When asked what the sources of finance were for the company, Medithi said their borrowing sources are through public deposits, commercial paper and sometimes through tax-free government bonds, which is usually according to Budget provisioning.

Last year they received Rs 5000 crore from tax-free bonds but this year there is no such provisioning and so, the company will be raising capital on its own through various means.

He said the cost of funding for the company stood at 7.5%.