Hudco Goes for Public Issue

Destination-Kerala-hudco

New Delhi: The Union Government plans to raise up to Rs. 1,224 crore by selling equity shares in the State-owned Housing and Urban Development Corporation (Hudco).

The initial public offer (IPO) of Hudco, the ‘Miniratna’ firm which provides loans for housing and urban infrastructure projects, hit the capital market today.

The government is offering 204,058,747 shares for sale.

Hudco has fixed the price band at Rs. 56-60 per equity share. The issue will close on May 11.

“We will raise about Rs. 1,200 crore at the upper band. Money will go to the Government of India,” M Ravi Kanth, Chairman and Managing Director, Hudco told reporters here.The Government will dilute 10.19 percent of holding through this IPO, he added.

Kanth said the company had an outstanding loan of Rs. 36,385 crore as on December 31, 2016 and highlighted that it has been able to contain its NPA level despite turbulence in the financial market. The company will focus on housing finance business, particularly affordable housing segment, he added.

 

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