Govt push to housing sector along with RERA to help company, says HUDCO

State-owned Housing and Urban Development Corporation (Hudco) whose initial public offer saw a robust response, on Friday told ET Now that it has received over 20 lakh application for the IPO. HUDCO’s IPO was oversubscribed 79.49 times on the final day of offer on Thursday. The company further added that government’s push to housing sector along with RERA to aid outlook for the company. The demand for HUDCO would increase with push from states for housing. The company told ET Now that it has reported profits and paid dividends since inception and the company’s net NPA stands at 1.51 per cent with the gross NPAs to be at 6.8 per cent.
The company received bids for 1,621 crore shares against the total issue size of 20.40 crore shares, data available with the NSE till 1915 hrs showed.
The category reserved for qualified institutional buyers (QIBs) was oversubscribed 55.45 times and non-institutional investors a huge 330.36 times. Retail investors portion was also oversubscribed 10.60 times. The company has priced its IPO in a band of Rs 56-60 and expects to garner Rs 1,224 crore.High-net-worth individuals bid for 992 crore shares of the 3 crore shares reserved for them, bidding 330.46 times.
Employees bid for 28.55 lakh shares of their quota of 38.68 lakh shares on offer. HUDCO is a wholly-owned government company involved in providing loans for housing and urban infrastructure projects in India. For the nine-month ended December 2016, the company posted a net profit of Rs 496.29 crore. For the year ended March 31, 2016, the company posted a net profit of Rs 810.6 crore against Rs 768.32 crore in the previous year.
Hudco is the first government-owned firm to go public since National Building Construction Corporation (NBCC) came with its public offering in March 2012. The IPO is a part of the government’s disinvestment programme. The government is aiming to raise Rs 72,500 crore through divestment in the current financial year.
Of the total, it aims to garner Rs 46,500 crore from minority stake sales through new listings as well as already listed firms, Rs 15,000 crore from strategic sales and Rs 11,000 crore through the listing of state-owned insurance companies.

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