Hudco to raise Rs 1,200 cr in first PSU IPO in five years

Housing and Urban Development Corporation Ltd (Hudco) plans to raise Rs 1,224 crore through its initial public offer (IPO), in first such offering by a government-owned company in the last five years.

The previous one, of National Building Construction Corporation Ltd (NBCC), in March 2012, had raised Rs 125 crore.

The Hudco IPO opens on May 8 and closes on May 11, except on May 10, which is a public holiday. With a price band of Rs 56-60 per share, over 20 crore equity shares will be available for sale, said Rakesh Kumar Arora, director (finance), Hudco.

Proceeds from the sale of equity shares will go to the government, which is offloading 10.2% through the IPO. Hudco, a miniratna company, provides loans for housing and urban infrastructure projects in India apart from offering consultancy services, promotes research and studies, etc.

The shares will be listed on BSE and National Stock Exchange. IDBI Capital Markets, ICICI Securities, Nomura Financial and SBI Capital Markets are the investment banks handling the IPO.

The sale includes 20.02 crore shares, while about 39 lakh shares will be kept aside for Hudco employees. Retail investors and employees will be given a discount of Rs 2 per share to the offer price. Investors will be able to bid for a minimum of 200 shares and in multiples of 200 shares thereafter.

Through the disinvestment process, the government plans to raise Rs 72,500 crore during the ongoing financial year to lower its deficit. The government had raised Rs 1,200 crore selling 10% stake in Nalco earlier this month.