The government has invited applications from merchant bankers to manage its 10% stake sale in the Housing and Urban Development Corporation (Hudco) through an initial public offer.
Bankers could submit their proposals latest by August 3. In June, the Cabinet had approved the 10% disinvestment in Hudco. Currently, the government owns 100% in the company, which has a paid-up capital of Rs 2001.9 crore. Its net worth is Rs 8,317 crore.
[related-post]
Apart from the financing operations, Hudco offers consultancy services, promotes research and studies and helps propagate use of local building materials, cost-effective and innovative construction technologies.
After a gap of more than three years, the Centre will roll out IPOs in PSUs in the current fiscal as part of its disinvestment plan as well as to meet market regulator (Sebi) guidelines on public holdings.
The IPOs are part of the Modi government’s Rs 36,000 crore revenue estimate from minority stake sales in PSUs in 2016-17. Another Rs 20,500 crore will be raised from strategic stake sales in PSUs. So far in the current fiscal, it has raised Rs 2,979 crore by selling shares in hydroelectricity company NHPC and Indian Oil.