Rs1200 crore HUDCO IPO fully subscribed on Day 2

MUMBAI: Strong retail interest helped the Rs 1,200-crore IPO for Housing and Urban Development Corp (HUDCO) oversubscribe 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 Rs 2 per share discount 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 as against 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.