State-owned Housing and Urban Development Corporation (HUDCO) today said it has raised ₹279 crore through the third tranche of tax-free bonds.

The Finance Ministry had allowed HUDCO to raise ₹5,000 crore through bonds in the current financial year.

HUDCO had raised ₹4,714 crore from the first two tranches of tax-free bonds and private placements.

To raise the balance amount of ₹286 crore, the company launched the third tranche of tax-free bonds on February 28.

“We have raised ₹279 crore from the third tranche. We pre-closed the issue because of higher participation from retail individuals,” a senior HUDCO official said.

The issue was to close on March 19.

The official said that the company has raised a total of ₹4,993 crore through bonds out of ₹5,000 crore allowed.

The basic size of the issue was ₹75 crore with an option to retain over-subscription up to ₹285.8 crore.

In August, HUDCO has raised ₹190.8 crore through private placement of bonds with institutional investors.

After that, the company raised ₹2,370 crore from the first tranche of tax-free bonds launched in September. Another ₹2,153.39 crore was garnered from the second tranche in December.

Hudco will utilise the funds to finance the government’s housing and urban infrastructure projects, working capital requirements, augmenting the company’s resource base and other operational requirements.

The company had posted net profit of ₹700 crore on revenue of ₹2,923 crore during the previous financial year.

It sanctioned projects worth ₹23,000 crore and disbursed ₹6,000 crore in last fiscal.

In this fiscal till February, HUDCO had disbursed loan amount of ₹5,826 crore. Loans sanctioned during the year amounted to ₹17,168 crore.

(This article was published on March 16, 2014)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.