- HUDCO's initial public offer (IPO) was a big hit among investors
- The Rs. 1,200 crore IPO of HUDCO received bids worth Rs. 97,000 crore
- Analysts say potential growth opportunity for HUDCO is huge
The Rs 1,200 crore initial public offer of Hudco received bids worth Rs. 97,000 crore, thereby recording the highest over-subscription in any PSU disinvestment, the government had said earlier.
Hudco primarily lends to urban infrastructure projects relating to water supply, roads and transport and power accounting for 69 per cent of the loan book. It also lends towards housing finance, which forms the balance 31 per cent of the loan book. Both the segments have vast untapped opportunity in India, which would provide potential growth opportunity for Hudco to scale up its operations, Angel Broking said in a note.
Meanwhile, Hudco is going to play a major role in Prime Minister Narendra Modi's Pradhan Mantri Awas Yojana scheme, which aims to provide subsidised housing loans to middle and income group, analysts say.
Hudco had reported a net profit of Rs 496 crore on net interest income (NII) of Rs 1,104 crore for the first nine months of last fiscal. At the issue price of Rs 60, Hudco shares were valued at 1.35 times its FY2017 estimated book value, which is a reasonable valuation, said Angel Broking.
Hudco shares closed 20.91 per cent higher at Rs 72.55.