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HUDCO Opens To A Robust Listing With 21% Premium At Rs 73.55

The performance of the issue followed the stellar subscription of the Initial Public Offering (IPO), which was almost about 80 times.

Photo Credit : Reuters

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Housing and Urban Development Corporation (HUDCO) has debuted on exchange at a premium of 21.5 percent at Rs 73.55/share. The performance of the issue followed the stellar subscription of the Initial Public Offering (IPO), which was almost about 80 times.


The Rs 1200 crore IPO received bids worth Rs 97,000 crore which is the highest over-subscription till date for any PSU divestment. The IPO had opened for subscription on May 8 and closed on May 11. The price band was set at Rs 56-60 per share for the issue.

The HUDCO issue is the first IPO of a Central Public Sector Enterprise (CPSE) since April 2012. The portion reserved for Qualified Institutional Buyers (QIBs) was over-subscribed 55.45 times, non-institutional investors saw a subscription of 330.36 times and retail investor's category was subscribed about 11 times.

ICICI Securities, SBI Capital Markets, IDBI Capital Markets, Nomura and a few others were the leading funds to the issue. 

HUDCO plans to grow its housing finance business and concentrate on government loans. The housing finance business accounts for 30.9 percent of the total approximately Rs 37,000 crore loans, while urban infrastructure finance loans and project-linked bonds account for the remaining 69.1 per cent.