Comments
State-run Hudco has received SEBI approval to raise funds through an initial share sale as part of the government’s disinvestment drive.
Hudco had filed draft papers with the Securities and Exchange Board of India (SEBI) in January and got the markets watchdog’s “observation” on March 10, which is necessary for any company to launch a public offer.
The initial public offer will comprise sale of 200,190,000 equity shares — 10 per cent stake — by the central government through an offer for sale (OFS) route, as per the Draft Red Herring Prospectus (DRHP).
A discount of up to 5 per cent on the issue price would be given to retail investors and Hudco employees.
The paid-up capital of Housing and Urban Development Corporation (Hudco) is Rs 2,001.90 crore as on March, 2016.
The government holds 100 per cent stake in the company.
IDBI Capital, Nomura Financial Advisory and Securities, SBI Capital Markets and ICICI Securities will manage the company’s public issue.
Proceeds from Hudco disinvestment will form part of the government’s disinvestment kitty in the current fiscal.
The government expects to raise Rs 56,500 crore through minority stake sale and strategic sale in PSUs this fiscal. Of this, Rs 36,000 crore is to come from minority stake sale in PSUs and another Rs 20,500 crore from strategic stake sale.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.