Govt to sell up to 8% stake in HUDCO via OFS on July 27-28, floor price Rs 45 per share

President Ram Nath Kovind, acting through the Ministry of Housing and Urban Affairs, Government of India, gave the nod for the share sale in HUDCO via the OFS route.

The Centre has decided to sell up to 16 crore shares, or around 8 percent stake, in the state-run Housing & Urban Development Corporation Ltd (HUDCO) via an offer for sale (OFS) on July 27-28.

The floor price for the offer has been fixed as Rs 45 per equity share, a regulatory filing noted.

"Offer for Sale of GoI equity in HUDCO opens tomorrow for non-Retail investors. Day 2 for Retail investors. Government would divest 5.5% shares with an additional 2.5% as Green Shoe Option (sic)," Secretary, Department of Investment and Public Asset Management, tweeted on July 26.

President Ram Nath Kovind, acting through the Ministry of Housing and Urban Affairs, Government of India, gave the nod for the share sale in HUDCO via the OFS route.

On Day 1, that is July 27, HUDCO aims to sell up to 11,01,04,500 equity shares of face value of Rs 10 each, representing 5.5 percent of the total paid-up equity share capital of the company.

HUDCO may also use the option to additionally sell 5,00,47,500 (2.5 percent) equity shares of the company (the "Oversubscription Option") on Day 2 of the OFS, the BSE filing noted.

"And in event the Oversubscription Option is exercised, the equity shares forming part of the Base Offer Size and the Oversubscription Option will represent 16,01,52,000 (8 percent) of the outstanding equity shares of the Company," it added.

Notably, the OFS shall take place during trading hours on a separate window of the Stock Exchanges on July 27, 2021 ("T" day) and July 28, 2021 ("T+1" day), from 9:15 a.m. to 3:30 p.m. (Indian Standard Time) on both days.

"Non-Retail Investors can place their bids only on the T day, that is July 27. While placing their bids the non-retail Investors may indicate their willingness to carry forward their un-allotted bids to T+1 day, that is July 28, "for allocation to them in the unsubscribed portion of Retail Category", the regulatory filing stated.

Earlier today, the price of HUDCO shares closed at Rs 47.30, down over 5 percent against the previous day's close.