Hudco files draft papers for IPO with SEBI

The Housing and Urban Development Corporation (Hudco) has filed a Draft Red Herring Prospectus (DRHP) for its proposed initial public offering (IPO), according to reports available. Through the IPO, the Central Government through an OFS route will sell up to 200.2 million equity shares – 10 per cent stake – in the company via offer for sale. While Hudco is under the administrative control of the Union Ministry of Urban Development (MoUD), retail investors and the company staff may be offered up to 5 per cent discount to issue price. Nomura Financial Advisory and Securities (India), IDBI Capital Markets & Securities, and SBI Capital Markets, are acting as the lead managers for issue. The IPO is part of the government’s broader divestment plans. The Central government has set a disinvestment target of Rs 56,500 crore for 2016-17. Of this, Rs 36,000 crore is expected to come from minority stake sales and Rs 20,500 crore from strategic stake sales.