Institutional buyers put in Rs 870 cr of bids for HUDCO share sale

Institutional investors on Tuesday placed bids worth over Rs 870 crore in the government's 8 per cent share sale in HUDCO.

Institutional investors put in bids for over 19.40 crore shares against the base issue size of more than 9.90 crore shares.

At the indicative price of Rs 45.03 apiece, the bids put in by institutional bidders are valued at over Rs 870 crore.

"The OFS of HUDCO got good response on Day one. Issue subscribed nearly two times of base size by non-retail investors. Government has decided to exercise the green-shoe option, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted.

The government is selling up to 8 per cent stake sale in HUDCO at a floor price of Rs 45 apiece. Bids would open for retail investors on Wednesday.

The sale of over 16.01 crore shares, or a total of 8 per cent stake, would fetch around Rs 720 crore to the exchequer.

The OFS comprises a base issue size of 5 per cent stake or over 11.01 crore shares, with an option to retain over-subscription of 2.5 per cent or over 5 crore shares, through an offer for sale (OFS).

Shares of HUDCO closed at Rs 45.40, down 3.81 per cent over the previous close on the BSE.

The government has already raised over Rs 7,646 crore through minority stake sale. Of this, Rs 3,651 crore is from NMDC OFS and Rs 3,994 crore from sale of SUUTI stake in Axis Bank.