HUDCO IPO Subscribed Nearly 80 Times On Final Day
The demand was led by non-institutional investors.
Housing and Urban Development Corporation Ltd.'s initial public offering (IPO) received bids for nearly 80 times the number of shares that were on offer by the time the issue closed on Thursday.
This was India’s first state-owned company IPO in the last five years.
Non-institutional investors led demand for the offer as the segment was subscribed 330 times, according to stock exchange data. The portion allotted to qualified institutional buyers was subscribed 55.5 times while the retail investor segment was subscribed just over 10 times.
HUDCO is looking to raise up to Rs 1,224 crore through a 10.2 percent stake sale by the central government. The price band for the issue was fixed at Rs 56-60 per share, valuing the company at Rs 12,000 crore.
Also Read: All You Need To Know About HUDCO’s IPO
The 46-year-old company provides loans for housing and urban infrastructure projects in India and a majority of its revenue comes from urban infrastructure finance. Ninety percent of the company's loan exposure is to the government, where risk of default is near zero.
The company which has traditionally lent more to urban infrastructure projects, has been increasing its presence in the home loans space. HUDCO’s loan portfolio grew to Rs 36,386 crore for the nine months ended December 2016 from Rs 30,012 crore in full financial year 2013-14.
