HUDCO to raise Rs 1,200 crore through IPO

BY PRESS TRUST OF INDIA

Housing and Urban Development Corporation (HUDCO), on April 27, 2017, launched a Rs 1,200-crore initial public offering, becoming the first central unit to hit the market with an IPO since 2012. The fully-owned government corporation has set a price band of Rs 56-60 per equity for the issue, through which the centre will dilute 10.19 per cent of its holding. The issue will open on May 8 and close on May 11, 2017.

“This is the first IPO under the disinvestment process since 2012. With this, the government’s holding will come down by 10.19 per cent,” HUDCO chairman and managing director, M Ravi Kanth said. The government has set an ambitious Rs 72,500-crore target from divestment in the fiscal 2018, of which nearly half is likely to be mopped up from IPOs. In the fiscal 2017, the government had set a Rs 45,500-crore target from divestment but failed to meet the same.

HUDCO is offering 20.40 crore equity shares for sale through the IPO, which comprises a net offer to the public of 20.01 crore equity shares and an employee reservation portion of up to 38.68 lakh shares. The Corporation, which is into financing urban infrastructure projects and housing, has appointed IDBI Capital Markets, SBI Capital Markets, Nomura and ICICI Securities, as the book running lead managers to the issue.

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