HUDCO To Raise Rs 40,000 Crore Via Debt Next Fiscal For Infrastructure Financing
The state-run housing finance company also announced an interim dividend of Rs 1.5 per share for FY24.
Housing and Urban Development Corp. will raise up to Rs 40,000 crore via debt issue next fiscal while increasing the overall borrowing limit to Rs 1.5 lakh crore as it plans to focus on financing infrastructure projects.
The board has approved plans for raising capital through the issue of bonds or debentures and stepping up its borrowing limit in a meeting on Wednesday, according to an exchange filing.
The company will focus on financing infrastructure projects to enhance its loan book and ensure better growth in the coming quarters, said Chairman and Managing Director Sanjay Kulshrestha in a post-earnings press conference last month.
HUDCO is already in talks with the Reserve Bank of India to become an infrastructure finance company and expects to receive approval in the coming months.
The company's borrowings as of Dec. 31 stood at Rs 65,719 crore.
The state-run housing finance company also announced an interim dividend of Rs 1.5 per share for FY24. The board has fixed March 29 as the record date for determining the eligibility of shareholders for payment of the dividend.
The company issued a final dividend of Rs 3.1 per share in September last year for the current fiscal. In FY23, an interim dividend of Rs 0.75 per share was handed out to shareholders.
The government holds 75.17% stake in HUDCO.
Shares of the company closed 0.96% lower at Rs 175.5 apiece after the announcement on Wednesday, as compared with a 0.12% advance in the benchmark BSE Sensex.
