Hudco IPO priced at Rs 56-60; opens on May 8
The Initial public offering of Housing and Urban Development Corporation (Hudco) opens on May 8 in the price band of Rs 56-Rs 60 per equity share of Rs10 face value.
The government will raise close to Rs 1,200 crore by divesting a 10.19 per cent stake in Hudco. Retail individual investors and employees of the company bidding in the retail category will be offered a discount of Rs 2 on the offer price.
Huco is a wholly owned government company providing loans for housing and urban infrastructure projects in India for more than 46 years now.
As on December 31, 2016, Hudco had a total loan portfolio of Rs 36,385 crore, out of which Rs 11,228.14 crore, or 30.86 per cent, was disbursed for housing finance and Rs 25,157.68 crore for urban infrastructure.
The company mostly lends to government projects (89.93 per cent) and a few private sector projects (9.71 per cent), according to the company’s red herring prospectus.
The company will not receive any proceeds from this IPO, Hudco said in a statement while announcing the public offer, which opens on May 8 and closes on May 11. Bids will not be accepted on May 10, being a public holiday for Buddh Purnima.
In the offer, over 38.68 lakh equity shares are reserved for employees.
From the net offer of over 20.01 crore shares to the public, 50 per cent will be available for allocation to qualified institutional buyers, 15 per cent to non-institutional or high net worth individual bidders and 35 per cent to retail individual bidders.
IDBI Capital Markets & Securities, ICICI Securities, Nomura Financial Advisory & Securities India and SBI Capital Markets are the book running lead managers to the offer.
Ravi Ranjan Prasad