HUDCO IPO subscribed over 3 times

Mumbai: Strong retail interest helped the Rs 1,200-crore IPO for

Housing and Urban Development

(HUDCO) get oversubscribed more than three times on day 2 of the offer. The IPO, through which the government is divesting 10.2% in HUDCO, will close on May 11.

The shares are being offered at a price band of Rs 56-60 per share. Retail investors and employees are eligible for a discount of Rs 2 per share on the final price, a release from the company said.

According to Tuesday’s figures, the retail portion was subscribed over four times while the institutional part was subscribed nearly three times and the HNI part was almost fully subscribed.

Through the HUDCO IPO, the government is selling a little over 20 crore shares. About 38.7 lakh shares are reserved for employees.

The maiden public offer for HUDCO, which provides loans for housing and urban infrastructure projects in the country, is part of the government’s plan to even out its divestment programme over the whole year compared with bunching up of the issues during the last few months of each fiscal. For fiscal 2018, it has set a divestment target of Rs 72,500 crore of which Rs 46,500 crore is estimated to come through minority stake sales.

IDBI Capital Markets

,

ICICI Securities

,

Nomura Financial Advisory

and

SBI Capital Markets

are managing the IPO.