Govt to sell 10 per cent equity in Hudco

The government will sell a 10 per cent stake in state-owned Housing and Urban Development Corporation Ltd (Hudco) through an initial public offer, as part of its plans to raise Rs56,500 crore in the current fiscal.

Cabinet approves disinvestment of 10 per cent paid up equity of Housing and Urban Development Corporation Ltd (Hudco), telecom minister Ravi Shankar Prasad said after a meeting of the Cabinet Committee on Economic Affairs (CCEA).

Government of India holds 100 per cent stake in Hudco and the share sale would be done % through an initial public offer (IPO) in the domestic market as per the Securities and Exchange Board of India (SEBI) Rules and Regulations.

Hudco has a paid-up equity capital of Rs2,001.90 crore and has a net worth of approximately Rs7,800 crore.

Hudco was incorporated on 25 April 1970 as a wholly owned Government of India enterprise under the administrative control of the ministry of housing and urban poverty alleviation with the objective of providing long term finance for construction of houses for residential purposes. It also finances and undertakes housing and urban development projects in the country.