Housing and Urban Development Corporation on Friday made a strong debut on the stock exchanges. The shares listed at ₹73, a 22 per cent premium over its issue price of ₹60 on the NSE. The stock gained as much as 30 per cent intraday but settled with a gain of 20 per cent, closing at ₹71.15.
According to analysts, HUDCO has healthy operating margins, high credit rating, access to diversified and lower-cost funding, pan-India presence in State government projects backed by quality leadership and management, strong business model and a great track record. The company’s IPO attracted high investor interest with subscription of 80 times.
G Chokkalingam, founder at Equinomics Research and Advisory recommends to hold the stock with a target price of ₹80.
The company’s initial public offer has been the third by a government-owned company after Mahanagar Gas (MGL) and PNB Housing Finance. Moreover, the IPO was the largest by a government-owned company in over five years.
HUDCO’s debut performance has been second-best among the three. MGL had done better on listing day with closing gains of 23.6 per cent.
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.