1. Hudco IPO subscribed 79.47 times on final day

Hudco IPO subscribed 79.47 times on final day

The initial public offering (IPO) of state-owned Hudco was subscribed 79.47 times on Thursday, the concluding day of its offer.

By: | Mumbai | Published: May 12, 2017 4:38 AM
HUDCO is a wholly-owned government company involved in providing loans for housing and urban infrastructure projects in India.

The initial public offering (IPO) of state-owned Hudco was subscribed 79.47 times on Thursday, the concluding day of its offer. Investors bid for 1,621 crore shares against the 20.40 crore shares on offer. The company has priced its IPO in a band of Rs 56-60, which will fetch the government Rs 1,224 crore. The issue received bids for 555.03 crore shares from the qualified institutional buyers of their quota of 10 crore shares. High-net-worth individuals bid for 992 crore shares of the 3 crore shares reserved for them, bidding 330.46 times.

Retail investors bid for nearly 10.61 times or 74.32 crore shares of the 7-crore reserved. 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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