Hudco shares rise after signing ₹1.5 trillion MoU with MMRDA

Shares of Housing and Urban Development Corp. (Hudco) rose over 6 per cent on Tuesday after it signed a Memorandum of Understanding (MoU) with Mumbai Metropolitan Region Development Authority (MMRDA) to provide ₹1.5 trillion for five years to develop infrastructure projects. 

 

The company's stock rose as much as 6.57 per cent during the day to ₹207.7 per share, the biggest intraday gain since March 19 this year. The stock pared gains to trade 6.26 per cent higher at ₹207.09 apiece, compared to a 1.76 per cent advance in Nifty 50 as of 2:45 PM. 

 

Shares of the company snapped two days of straight losses on Tuesday. The stock has they have fallen 11.9 per cent this year, compared to a 4.7 per cent fall in the benchmark Nifty 50. The company has a total market capitalisation of ₹41,459.3 crore, according to BSE data. 

 

In an exchange filing on Tuesday, the company said it signed a MoU to explore and provide funds for the development of infrastructure projects to be implemented by MMRDA in the Mumbai Metropolitan Region. "Further, Hudco will also extend consultancy services and capacity building activities to meet the emerging requirements of MMRDA."

 

Last week, Hudco said that its board has approved a borrowing program of up to ₹65,000 crore for the financial year 2025-2026, depending upon actual fund requirements. The company's board also approved an increase in the overall borrowing limit to ₹2.5 trillion from the existing limit of ₹1.5 trillion.

 

Housing and Urban Development Corp is a public sector undertaking engaged in providing loan financing for housing and urban infrastructure projects, with a focus on social housing and infrastructure projects. Hudco finances a variety of housing and urban development projects formulated by the State Housing Boards, Development Authorities, Improvement Trusts, Co-operative Housing Societies, etc. The company enjoys the Navratna status conferred by the government of India.

 

The company posted a net profit of ₹735 crore for the third quarter of FY25, up 41.6 per cent year-on-year (Y-o-Y). For the first nine months of FY25 (9M FY25), Hudco’s net profit rose by 39.87 per cent Y-o-Y to ₹1,981.40 crore. Revenue during the same period increased by 30.55 per cent Y-o-Y to ₹7,466.13 crore.