HUDCO Tumbles Over 9% On Government's Stake Sale Plans, Large Trade

Shares of Housing & Urban Development Corporation Ltd. tumbled over 9% on Wednesday after the government said it would sell stake in the company.

Adding to this, at least 12.1 lakh shares of the company changed hands in a pre-market large trade, according to Bloomberg data.

The government will sell up to 7% stake in HUDCO via an offer for sale, according to an exchange filing on Tuesday evening. The OFS includes an optional 3.5% additional stake sale. The floor price of OFS was set at Rs 79 per share, a discount of 12.17% from Tuesday's closing price.

Shares of the company fell as much as 9.12% to Rs 81.75 apiece, the lowest level since Sept. 25. It pared losses to trade 8.39% lower at Rs 82.40 apiece, compared to a 0.09% decline in the benchmark NSE Nifty 50 as of 9:25 a.m.

It has risen 57.8% on a year-to-date basis. The total traded volume so far in the day stood at 13 times its 30-day average. The relative strength index was at 46.