The Housing and Urban Development Corporation (Hudco) stock has gained over 32 per cent in the past three days. Even after Tuesday’s 12 per cent rally, the stock continues to be in demand with gains of over five per cent on Wednesday.
Turnover in the counter has also been unusually high in the past three days, with today’s turnover touching Rs 70 crore according to data on BSE.
Sources indicate that one of India’s well-known high net worth individuals (HNIs) is mopping up a stake in Hudco, thus explaining the unusual trading volumes and price surge. "With affordable housing being the new theme, particularly for HNIs, investors are willing to acquire Hudco’s shares even at a substantial premium," says a broker with knowledge of the deal.
He adds that with the government holding about 89 per cent in Hudco, the free float of the stock is limited, which also adds to its premium.
With listing gains of over 22 per cent, the stock was on the priority list for most investors.
At its current market price of Rs 94.75 (at the time of filing), Hudco’s market capitalisation stands at about Rs 1,934 crore and has entered the list of BSE500 stocks.