HUDCO Initial Public Offer Subscribed 63% On Day One
Housing and Urban Development Corporation Ltd. (HUDCO), the first government-run company to go public in five years, saw its initial public offering (IPO) subscribed 63 percent on the first day of the offer. The retail category saw the highest participation.
The urban infrastructure lender recieved bids for 12.9 crore shares against 20.4 crore shares on offer, according to a media statement, issued by the company. The portion reserved for retail investors was subscribed 1.5 times at the end of day one. The qualified institutional buyer portion was subscribed 0.18 times, while the high networth individual category was subscribed 0.16 times.
HUDCO is looking to raise up to Rs 1,224 crore through a 10.2 percent stake sale by the central government. The price band has been set at Rs 56-60 per share. This values the company at Rs 12,000 crore. The will remain open for two more days till May 10.
Read More: All You Need To Know About HUDCO's IPO
The 46-year-old company provides loans for housing and urban infrastructure projects in India and a majority of its revenue comes from urban infrastructure finance. Ninety percent of the company's loan exposure is to the government, where risk of default is near zero.
The company which has traditionally lent more to urban infrastructure projects, has been increasing its presence in the home loans space. HUDCO's loan portfolio grew to Rs 36,386 crore for the nine months ended December 2016 from Rs 30,012 crore in full financial year 2013-14.
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