HUDCO IPO receives good investor response as issue gets completely subscribed

IPO

State-owned HUDCO’s initial public offering (IPO) was oversubscribed 1.08 times on the second day after the issue was opened for investors.

Out of a total issue size of 20,40,58,747 shares, the issue received bids worth 22,07,41,600 shares, data available from the NSE revealed. These numbers are as of 12:30 pm and will be updated accordingly.

Housing and Urban Development Corporation (HUDCO) is a 'Miniratna' firm which provides loans for housing and urban infrastructure projects. The issue will close on May 11.

HUDCO has fixed the price band of Rs 56-60 per equity share. The company appointed IDBI Capital Markets, SBI Capital Markets, Nomura and ICICI Securities as the book running lead managers to the issue.

The exercise is a part of the government’s divestment plan. The Centre wishes to divest 10 percent in the company and all the proceeds will go the government. In fact, HUDCO is less than 3 times leveraged and needs no fresh fund-raising. Furthermore, it can divest further 15 percent from the state-run firm.