The government on Tuesday said that it will divest up to 7 per cent of its equity in Housing & Urban Development Corporation (HUDCO) on October 18-19. At the floor price of ₹79, the government will get ₹553 crore.
The floor price shows 12 per cent discount on Tuesday’s closing price of ₹89.92. With this stake sale, the government’s holding will come down to 74 per cent, thus, fulfilling Minimum Public Shareholding norms. “Offer for Sale in HUDCO opens tomorrow for non-retail investors. Retail investors can bid on Thursday. Government will divest 7 per cent equity including a Green Shoe option of 3.5 per cent,” Tuhin Kanta Pandey, Secretary in the Department of Investment and Public Asset Management (DIPAM), said in a social media post on ‘X’.
Offer for Sale
The share will be sold through an Offer for Sale (better known as the auction method) spread over two days. While non-retail investors can place bids on Wednesday, retail investors can file applications on Thursday.
HUDCO is the premier techno-financing public sector enterprise, in the field of housing and infrastructure development. With an authorised capital of ₹2,500 crore, as on date, HUDCO has a paid-up equity of ₹2,001.90 crore. HUDCO was upgraded to a Schedule-A PSE in 2002 and was also conferred the Mini Ratna status in 2004.
The company closed the April-June quarter with revenue of ₹1,842 crore and net profit of ₹445.7 crore.