Shares of Housing and Urban Development Corporation Ltd. jumped over 3% in trade on Thursday, after the state-owned housing finance company announced a Rs 25,000 crore funding commitment for industrial infrastructure projects in Bihar.
The stock is trading at Rs 184 apiece on NSE around 9.50 am today, gaining from its previous close at Rs 178.35. Meanwhile, Nifty 50 gained only 0.4% during the period.
Investors are also tracking a government shareholding restructuring that will shift the Ministry of Rural Development's HUDCO shares to the Ministry of Housing and Urban Affairs, without changing the Centre's overall stake.
Rs 25,000 Crore Bihar Funding Plan
HUDCO signed an MoU with the Government of Bihar on Sept 2, 2026, at Patna. Under the agreement, the company will provide financial assistance of up to Rs 25,000 crore over five years for the development of industrial infrastructure, including land acquisition for industrial park projects.
The company stated that this MoU is valid for three years from the date of execution, subject to annual review.
The MoU comes as the Bihar government develops industrial park projects across different districts of the state. The Infrastructure Development Authority, Bihar, has been entrusted with facilitating or implementing identified infrastructure initiatives, including industrial parks, land acquisition and enabling infrastructure.
The funding will be drawn in tranches by a statutory authority specifically designated by the state government.
The agreement provides for flexible financing terms, including a moratorium and a repayment schedule of up to 25 years, with an option for prepayment. Repayment will be supported by project-generated revenue or ring-fenced revenue from identified receivables or the state budget. Separate operational agreements will be signed for individual projects, with the scope and terms to be mutually agreed.
Government To Consolidate HUDCO Holding
In a separate exchange filing, HUDCO disclosed that it has received an Office Memorandum dated Sept 1 from the Department of Investment and Public Asset Management regarding its government shareholding.
HUDCO is currently a government company with a 75% promoter holding. Of this, 54.27% is held through the Ministry of Housing and Urban Affairs, while 20.73% is held through the Ministry of Rural Development.
DIPAM has decided to transfer the shares held in the Ministry of Rural Development's demat account to the demat account of the Ministry of Housing and Urban Affairs. Importantly, the government's overall shareholding in HUDCO will remain unchanged at 75%. HUDCO said further developments will be communicated in due course.
HUDCO Share Price Movement
The stock has been down over a year now, even after incorporating today's gains. Over a year, the stock shed around 15%, while in 2026 the stock has declined more than 19% so far.
Currently, it is trading at a price-to-earnings multiple of 8.39 times, with a market cap of Rs 36,804.9 crore.
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