Hudco raises Rs 2,185 crore through tax-free bonds

Housing and Urban Development Corporation (HUDCO) has raised Rs 2,185 crore from its latest tranche of tax-free bonds.

The state-owned company's issue of tax free bonds has been subscribed over 4 times from the basic size of Rs 500 crore and 90 per cent of the total shelf-limit of Rs 2,439 crore. The bonds issue opened on December 2 and closed on January 3.

The Finance Ministry had allowed Hudco to raise Rs 5,000 crore through bonds in financial year 2013-14.

Hudco raised Rs 190.8 crore in August via a private placement with institutional investors. Another Rs 2,370 crore was garnered from the first tranche of tax-free bonds launched in September.

With this second round of bonds issue, Hudco has been able to mop up Rs 4,746 crore out of the Rs 5,000 crore sanctioned.

"We have raised about Rs 2,185 crore through bonds issue. Response from retail investors was very good," Hudco chairman and managing director V P Baligar told PTI.

"We closed the issue little early as we met our current fund requirement."

Issue was originally scheduled to close on January 10.

"We may need further funds towards the end of this fiscal," Mr Baligar added.

Hudco raised Rs 2,184.83 crore through issue of the second tranche of tax-free bonds, of which retail investors accounted for Rs 1,267.15 crore, high net worth individuals (HNIs) Rs 491.03 crore and institutional investors Rs 426.65 crore.

It would utilise the funds to finance the government's housing and urban infrastructure projects, working capital requirements, augmenting the company's resource base and other operational requirements.

The company is engaged in the financing and promotion of housing and urban infrastructure projects throughout India. It posted a net profit of Rs 700 crore on revenue of Rs 2,923 crore during the previous financial year.

It sanctioned projects worth Rs 23,000 crore and disbursed Rs 6,000 crore in last fiscal year.