HUDCO IPO Sees Blockbuster Response, Subscribed Nearly 80 times
HUDCO's Rs 1,200-crorepublic offer will be open from May 8 to May 11 Government will divest 10% stake in HUDCO through IPO Retail investors, employees to get Rs 2 discount on offer price of shares
New Delhi: The initial public offer of state-owned HUDCO, which has seen a robust investor demand, was oversubscribed 79.49 times on the final day of offer today. The IPO to raise Rs 1,224 crore received bids for 16,22,12,70,600 shares against the total issue size of 20,40,58,747 shares, data available with the NSE till 1915 hrs showed.
The category reserved for qualified institutional buyers (QIBs) was oversubscribed 55.45 times and non institutional investors a huge 330.36 times, sources said. Retail investors portion was also oversubscribed 10.60 times.
Housing and Urban Development Corporation (HUDCO), a 'Miniratna' firm which provides loans for housing and urban infrastructure projects has fixed the price band at Rs 56-60 per equity share. The company has appointed IDBI Capital Markets, SBI Capital Markets, Nomura and ICICI Securities as the book running lead managers to the issue.
The shares of the company are proposed to be listed on BSE as well as NSE. Of the total outstanding loan of Rs 36,385 crore as on December 31, 2016, HUDCO has financed 69 per cent to urban infrastructure projects and 31 per cent to the housing sector. Earlier this year, the IPO of Avenue Supermarts, the operator of retail chain D-Mart was oversubscribed by a staggering 104.48 times.
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