The government is divesting its 10 per cent stake in the Housing and Urban Development Corporation (Hudco). The issue will open on May 8.
As part of its divestment programme, the government is divesting its 10 per cent stake in the Housing and Urban Development Corporation (Hudco). The issue will open on May 8 and close on May 11. The price band of the issue is Rs 56-60. Hudco is a wholly owned government company with focus on Housing and Urban Infrastructure Finance in India. Brokerage house Angel broking has recommended ‘Subscribe’ to the issue and said, ” HUDCO has a unique blend of business with focus on financing both housing and urban infrastructure, which has vast untapped opportunity in India. Focus on government sponsored projects and ability to raise funds at a competitive price provides earnings visibility for many years. ”
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Rating
HUDCO has AAA rating on its long-term borrowings from ICRA & CARE, which has helped it in borrowing at very competitive rates from the market. Despite funding to large and long gestation projects HUDCO has been able to maintain NIM in the range of 4.6-4.3% over the last three years.
Issue details
Issuance of 20.4cr Equity shares of face value via IPO at an offer price band of Rs 56-60. The issue size is Rs 1,128 cr – Rs 1210 cr at the price band and there is a discount of Rs 2/ share for retail category and for employees.
Objects of the offer
To achieve the benefit of listing the stock on the exchanges