Housing & Urban Development Corp. will raise Rs 2,000 crore through bonds on a private placement basis at a coupon rate of 7.19%, according to an exchange filing.
In a meeting on Thursday, Hudco's bond allotment committee approved the issuance of unsecured, taxable, redeemable, non-convertible, non-cumulative debentures with a face value of Rs 1 lakh each, it said.
The base issue size is Rs 500 crore, with an additional green-shoe option of Rs 1,500 crore. The bonds, which are proposed to be listed on the BSE, are redeemable at face value after 10 years, with interest payable annually, the filing added.
Hudco provides financing and credit facilities to the housing and infrastructure sectors, emphasising on urban development. Its net profit rose 42% to Rs 735 crore in the third quarter of the current financial year, while revenue surged 37% year-on-year to Rs 2,760 crore.
Shares of Hudco closed 1.76% lower at Rs 200.18 apiece on the National Stock Exchange, compared to a 0.45% rise in the benchmark Nifty. The stock has risen 7.08% in the last 12 months but declined 14.71% on a year-to-date basis.
Two analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 80.3%.
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