HUDCO initial public offer targets Rs1,220 crore

Housing and Urban Development Corp Ltd (HUDCO) on Thursday announced plans to raise a total of Rs1,220 crore ($191 million) through sale of a 10 per cent stake in an initial public offer.

HUDCO, a fully state-owned company that finances housing and urban infrastructure projects, plans to sell about 204.1 million shares, or just over a tenth of its paid-up equity, at Rs56-60 a share, the company said in a statement.

The IPO, the first by a state-run entity in five years, will open on 8 May and closes on 11 May.

The company will not get any proceeds from the offering, which is part of the government's PSU divestment programme.

Of the 204.1 million shares on offer, 200.2 million shares are for sale to the public, while about 3.9 million shares are reserved for employees of the company. Retail investors and employees will get a discount Rs2 on each share purchased.

The IPO, the first by a state-owned company since NBCC (India) Ltd's 2012 listing, is part of the finance ministry's plan to raise a total Rs72,500 crore in the current financial year through sale of stake in companies to help lower its deficit.