HUDCO to raise Rs 750 cr through tax-free bonds, eyes Rs 5,000 cr oversubscription
The bond issue will open on January 9 and close on January 22. The face value of each bond is Rs 1,000.
"We plan to raise Rs 750 crore, but our intent is to mobilise the entire Rs 5,000 crore by March," HUDCO Chairman and Managing Director V P Baligar told reporters here.
The company intends to utilise the proceeds for lending purposes, working capital requirements, augmenting the resource base and meet other operational needs, he said.
Last year, the company mobilised Rs 5,000 crore and managed to utilise all the funds, he said.
HUDCO is offering 15 basis points more than other issuers which have recently launched their tax-free bonds, he said, adding, "for the first time ever, non-resident Indians and foreign institutional investments will be able to participate in the issue."
The coupon rate for qualified institutional buyers (QIB), corporates and high-net worth individuals has been fixed at 7.51 per cent per annum for 15 years and 7.34 per cent for 10 years. For retail investors, the coupon rate is 7.84 per cent for 10 years and 8.01 per cent for 15 years.
The bonds will be listed on NSE. SBI Capital Markets, Enam Securities, ICICI Securities and Kotak Mahindra Capital Company have been appointed as lead managers to the issue.
The mini-ratna PSU has so far disbursed Rs 82,000 crore, of
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