Hudco board approves ₹750 crore fundraise via non-convertible debentures

The base issue size is ₹500 crore, with an additional green-shoe option of ₹250 crore

The board of Housing & Urban Development Corporation Ltd (Hudco) on Friday approved raising ₹750 crore through non-convertible debentures (NCDs) at a coupon rate of 6.52 per cent.

 

The unsecured, taxable, redeemable, non-convertible, non-cumulative debentures will be issued on a private placement basis to a select group of investors. Each debenture will have a face value of ₹1,00,000, the company said in a regulatory filing.

 

The base issue size is ₹500 crore, with a green-shoe option of an additional ₹250 crore. The bonds are proposed to be listed on the BSE and will be redeemable at face value after three years. Interest will be paid annually. 

 

Debt market momentum

  According to a Business Standard report, Hudco is among several Indian companies that have tapped into the domestic debt capital market this week, collectively raising over ₹12,000 crore. The moves come amid expectations of a 25-basis-point (bps) repo rate cut by the Reserve Bank of India (RBI).

 

However, the RBI surprised markets on Friday with a 50-bps cut, bringing the repo rate down to 5.5 per cent from 6 per cent—a development that could further accelerate debt fundraising. 

 

Hudco’s financial performance 

Hudco, a public sector enterprise providing financing for housing and infrastructure projects, was granted Navratna status in April 2024. The company reported a 3.93 per cent year-on-year rise in net profit to ₹727.74 crore for Q4 FY25. Revenue for the quarter surged 37 per cent y-o-y to ₹2,760 crore.

 

For the full fiscal year, net profit rose to ₹2,709.14 crore, up from ₹2,116.74 crore in FY24.

 

Hudco shares closed 1.78 per cent lower at ₹246.20 apiece on the BSE on Friday.