HUDCO Lists At Premium Of More Than 22%
HUDCO IPO was subscribed 79.5 times.
The first non-banking finance company (NBFC) to launch its initial public offering in 2017, Housing and Urban Development Corporation Ltd. (HUDCO) got listed at a premium of 22.4 percent on the BSE.
The company is now valued at Rs 14,700 crore at its listing price of Rs 73.45 apiece. The IPO was subscribed 79.53 times as it raised close to Rs 1,224 crore. The issue is an offer for sale from the government to divest a little more than 10 percent stake in the company. It is also the first government company to get listed in more than five years.
HUDCO is a 46-year-old company which provides loans for housing and urban infrastructure projects in India and a majority of its revenue comes from urban infrastructure finance. The government-owned company, which has a net worth of Rs 8,968 crore, has no direct listed peers. HUDCO is in the wholesale lending business while other NBFCs such as HDFC Ltd., LIC Housing Finance Ltd. and Indiabulls Housing Ltd. operate in the retail segment.
HUDCO listed at the highest premium for a state-run company in the last seven years since MOIL Ltd. went public at a premium of 47 percent in 2010. Prior to HUDCO, National Building Construction Corporation Ltd. was the last government-owned company to go public, listing at a discount of 5.7 percent in 2012.
HUDCO is the eighth company to get listed in 2017. Among the eight companies, which have together raised more than Rs 11,000 crore from the primary market, CL Educate Ltd. was the only one to list a discount.