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Hudco files draft papers with Sebi for IPO

Central govt to sell 200 mn shares via OFS; 5% off on issue price for retail investors, Hudco staff

Press Trust of India  |  New Delhi 

Domestic i-banks gain edge in IPOs

State-run has filed draft papers with capital market regulator Sebi to raise funds through an initial share sale as part of the government's disinvestment drive.

The initial public offer will see the sale of 200,190,000 equity shares, or 10 per cent stake, by the central government through the offer for sale (OFS) route, as per the Draft Red Herring Prospectus (DRHP).

A discount of up to 5 per cent on the issue price for retail investors and employees would be given.

The paid up capital of Housing and Urban Development Corporation (Hudco) is Rs 2,001.90 crore as on March, 2016. The Government holds 100 per cent stake in the company.

IDBI Capital, Nomura Financial Advisory and Securities, SBI Capital and ICICI Securities will manage the company's public issue.

The proceeds from disinvestment will form part of the government's disinvestment kitty in the current fiscal.

The government has budgeted to raise Rs 56,500 crore through minority stake sale and strategic sale in PSUs. Of this, Rs 36,000 crore is to come from minority stake sale in PSUs and another Rs 20,500 crore from strategic stake sale.

First Published: Tue, January 03 2017. 15:04 IST