HUDCO ends flat as OFS concludes

Housing & Urban Development Corporation (HUDCO) shed 0.44% to Rs 45.20 after the company's offer for sale (OFS) concluded on Wednesday, 28 July 2021.

Through the OFS, the Government of India initially proposed to sell up to 11,01,04,500 equity shares (representing 5.5% stake). The Government of India held 89.81% stake in HUDCO as of 30 June 2021.

The floor price for the OFS is Rs 45 per equity share, at a 4.66% discount to HUDCO's closing price of Rs 47.20 recorded on the BSE on Monday, 27 July 2021.

The OFS opened on Tuesday (27 July 2021) for non-retail investors, while both retail as well as non-retail investors were allowed to subscribe on Wednesday (28 July 2021). A total of 10% of the offer size is reserved for retail investors.

On Tuesday (T day), the OFS received subscription for 19,40,90,506 shares or 195.86% against the base non-retail offer size of 9,90,94,050 shares.

Following the strong response on T day, the government decided to exercise the oversubscription option of 5,00,47,500 shares (2.5% equity) in addition to the base offer.

Accordingly, the final share sale was 16,01,52,000 shares, constituting 8% of the paid-up equity share capital of HUDCO.

As on 15:30 IST on Wednesday (T+1 day), the OFS received total bids for 4,63,90,996 shares or 289.67% of the enhanced total retail offer size of 1,60,15,200 shares.

The retail segment received bids for 29,45,472 shares or 18.39% of the total retail offer size.

The non-retail segment received bids for 4,34,45,524 shares or 271.28% of the total retail offer size.

Government backed-HUDCO is a premier techno-financing public sector enterprise and is engaged in the field of housing and infrastructure development in India.

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