Institutional bidders lap up govt's offer for sale of HUDCO shares

The government's offer for sale of HUDCO shares to institutional investors was over-subscribed on Tuesday.

Of the base issue size of over 9.90 crore shares, institutional investors put in bids for over 12.59 crore shares, or 1.27 times, till 2.30 pm, according to the NSE data.

Bidding will continue till close of the market hours.

The government is selling up to 8 per cent stake sale in HUDCO at a floor price of Rs 45 apiece. Institutional investors are bidding on Tuesday, and 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.

The government is selling over 9.90 crore share to institutional bidders on Tuesday and have the option to retain the over-subscription.

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.