New Delhi [India]: Shares of the government-owned Housing and Urban Development Corporation (HUDCO) are set to go live on the Bombay Stock Exchange ( BSE) starting May 19.
The state-run HUDCO, which provides loans for housing and urban infrastructure projects in India, recently raised over Rs. 1,120 crores as a part of its Initial Public Offer (IPO), assisting the government’s efforts to meet its disinvestment target.
After its IPO was welcomed with positivity by the market, Department of Investment and Public Asset Management ( DIPAM) Secretary Neeraj Kumar Gupta said the subscription will help enhance the growth of Central public sector units ( PSU) in the country.
“The main aim is to ensure that the public can validate the functioning of these companies. Furthermore, it will also enable them to borrow capital from the market and ensure listing on the exchange,” Gupta told ANI.
Speaking on the phenomenal response to its IPO, Neeraj said the retail sector recorded an oversubscription up to the extent of 125 percent.
“The retail participation instigated further subscription, and subsequently we received full subscription,” he added.
Subscription to the IPO, which ended on May 11 witnessed massive demand from investors and was subscribed nearly 80 times.
The portion reserved for qualified institutional buyers (QIBs) was subscribed 55.45 times, non-institutional investors saw a subscription of 330.36 times and retail investor’s category was subscribed about 11 times.
As of September 30, the total assets under management ( AUMs) are to the tune of Rs. 36,110 crore, which includes housing finance assets of Rs. 11,290 crore and urban infrastructure finances of Rs. 24,820 crore. (ANI)