Mumbai : State-owned housing and urban infrastructure finance company, Housing and Urban Development Corporation (HUDCO) is likely to raise around Rs 1,200 crore through initial public offering (IPO). The capital raised will go to the government’s kitty as it is divesting almost 10 per cent of its shares. The price band is Rs 56 –Rs 60 per share.
The IPO is open for subscription from May 8 and will close on May 11, 2017. After a gap of five years, this is the first wholly-owned government company that has undertaken disinvestment. Commenting on the disinvestment, HUDCO’s director finance, Rakesh Kumar Arora said, “HUDCO does not need equity. It does not need equity for the next five years to come.”
As of September 30, 2016 the company’s total outstanding loan portfolio was Rs 36, 120 crore, of which 31 per cent were for housing finance loans and 69 per cent were for the urban infrastructure.
Arora said, “In 2014, we were disbursing about 26 per cent of our loan book to the housing sector and 74 per cent for the urban infrastructure.” He added, “With the government focus increasing, this growth will further continue. Maybe in times to come, the housing portfolio might increase more rapidly, then other portfolio.”In FY 2016-17, the company have seen 12 per cent of growth in disbursement of loan. The company posted a net profit of Rs 780 crore crore in 2015-16 which is up 0.8 per cent from a year ago period. Commenting about future growth, he said, “We are looking at the same pace of growth we have seen in the past years.”
