HUDCO raises Rs 279 cr via tax-free bonds

The Finance Ministry had allowed HUDCO to raise Rs 5,000 cr through bonds in the current financial year

State-owned Housing and Urban Development Corporation (HUDCO) today said it has raised Rs 279 crore through the third tranche of tax-free bonds.

The Finance Ministry had allowed HUDCO to raise Rs 5,000 crore through bonds in the current financial year.

HUDCO had raised Rs 4,714 crore from the first two tranches of tax-free bonds and private and private placements.

To raise the balance amount of Rs 286 crore, the company launched the third tranche of tax-free bonds on February 28th.

"We have raised Rs 279 crore from the third tranche. We pre-closed the issue because of higher participation from retail individuals," a senior HUDCO official said.

The issue was to close on March 19.

The official said that the company has raised a total of Rs 4,993 crore through bonds out of Rs 5,000 crore allowed.

The basic size of the issue was Rs 75 crore with an option to retain over-subscription up to Rs 285.8 crore.

In August, HUDCO has raised Rs 190.8 crore through private placement of bonds with institutional investors.

After that, the company raised Rs 2,370 crore from the first tranche of tax-free bonds launched in September. Another Rs 2,153.39 crore was garnered from the second tranche in December.

Hudco will utilise the funds to finance the government's housing and urban infrastructure projects, working capital requirements, augmenting the company's resource base and other operational requirements.

The company had posted net profit of Rs 700 crore on revenue of Rs 2,923 crore during the previous financial year. It sanctioned projects worth Rs 23,000 crore and disbursed Rs 6,000 crore in last fiscal.

In this fiscal till February, HUDCO had disbursed loan amount of Rs 5,826 crore. Loan sanctioned during the year amounted to Rs 17,168 crore.