The initial public offering (IPO) of HUDCO, which opened on Monday, was subscribed 0.63 times with investors bidding for 12.91 crore shares against the 20.40 crore shares on offer. The company has priced its IPO, which will fetch the government `1,224 crore, between Rs 56-60.
The issue received bids for 1.75-crore shares from qualified institutional buyers of their quota of 10 crore shares. High net-worth individuals bid for 48.31 lakh shares of the 3-crore shares reserved for them, bidding 0.16 times. Retail investors bid for nearly 1.52 times, or 10.67 crore shares of the 7 crore shares reserved. Employees bid for 47,600 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 period 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 Centre’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.