+
Government's 8% stake sale in HUDCO with floor price Rs 45 per unit
Real Estate

Government's 8% stake sale in HUDCO with floor price Rs 45 per unit

The government's stake sale of 8% in Housing and Urban Development Corporation Limited(HUDCO) opens on Tuesday at a floor price of Rs 45 per share. The sale of 16.01 crore or 8% shares would fetch nearly Rs 720 crore to the exchequer.

The government is selling 5.5% shares or over 11.01 crore shares with retain-over-subscription and 2.5% shares or over 5 crore shares through an offer-for-sale (OFS) option.

According to the Secretary of the Department of Investment and Public Asset Management (DIPAM), Tuhin Kanta Pandey, the OFS for the Government of India (GoI) equity in HUDCO opens on Tuesday and the next day for retail investors. The government would divest 5.5% and extra 2.5% shares as Green Shoe Option.

President Ram Nath Kovind, acting through the Ministry of Housing and Urban Affairs, allows the sale of the stakes in HUDCO through the OFS method.

On Monday, the stakes of HUDCO closed at Rs 47.20 per unit, down 6.81% on the share market BSE.

The government's floor price at Rs 45 per unit is at a discounted price of 4.66% over the closing price.

The government has already generated more than Rs 7,646 crore through the sale of a minority of stakes. Out of this, Rs 3,651 crore is from National Mineral Development Corporation Private Limited (NMDC) OFS and Rs 3,994 crore from the sale of Specified Undertaking of Unit Trust of India (SUUTI) stake in Axis Bank.

As per BSE reports, on July 27, HUDCO aims to sell over 11 crore equity shares of Rs 10 face value per unit, which is 5.5% of the total equity share capital of the company. It also aims to sell over 5 crore shares on July 28, which is 2.5% of the equity shares that the company holds.

Image Source

The government's stake sale of 8% in Housing and Urban Development Corporation Limited(HUDCO) opens on Tuesday at a floor price of Rs 45 per share. The sale of 16.01 crore or 8% shares would fetch nearly Rs 720 crore to the exchequer. The government is selling 5.5% shares or over 11.01 crore shares with retain-over-subscription and 2.5% shares or over 5 crore shares through an offer-for-sale (OFS) option. According to the Secretary of the Department of Investment and Public Asset Management (DIPAM), Tuhin Kanta Pandey, the OFS for the Government of India (GoI) equity in HUDCO opens on Tuesday and the next day for retail investors. The government would divest 5.5% and extra 2.5% shares as Green Shoe Option. President Ram Nath Kovind, acting through the Ministry of Housing and Urban Affairs, allows the sale of the stakes in HUDCO through the OFS method. On Monday, the stakes of HUDCO closed at Rs 47.20 per unit, down 6.81% on the share market BSE. The government's floor price at Rs 45 per unit is at a discounted price of 4.66% over the closing price. The government has already generated more than Rs 7,646 crore through the sale of a minority of stakes. Out of this, Rs 3,651 crore is from National Mineral Development Corporation Private Limited (NMDC) OFS and Rs 3,994 crore from the sale of Specified Undertaking of Unit Trust of India (SUUTI) stake in Axis Bank. As per BSE reports, on July 27, HUDCO aims to sell over 11 crore equity shares of Rs 10 face value per unit, which is 5.5% of the total equity share capital of the company. It also aims to sell over 5 crore shares on July 28, which is 2.5% of the equity shares that the company holds. Image Source

Related Stories

Gold Stories

Next Story
Infrastructure Transport

97 Per Cent Of Rongjeng-Mangsang-Adokgre Road Nears Completion

Deputy Chief Minister in-charge of public works Prestone Tynsong said in Shillong on 26 August that 97 per cent physical progress had been achieved on the ongoing Rongjeng-Mangsang-Adokgre road being constructed under the Non-Lapsable Central Pool of Resources (NLCPR). He noted the project was sanctioned in 2017 and that the stipulated time for completion had been 24 months from issue of the final work order. The deputy chief minister informed the assembly that the government had decided to include the remaining work under a World Bank project. In reply to a query from Rongjeng MLA Jim M Sangm..

Next Story
Infrastructure Transport

First TBM Starts Digging Five Point Three Kilometre Tunnel Under SGNP

The Goregaon-Mulund Link Road (GMLR) Phase three (B) project has reached a key milestone as the first tunnel boring machine (TBM) began excavation of the first of two tunnels beneath the Sanjay Gandhi National Park (SGNP). The machine, named Tulsi, started cutting a five point three kilometre bore that will link Dadasaheb Phalke Chitranagari in Goregaon East with Amar Nagar in Mulund West. Officials issued a statement noting the commencement of tunnelling work under the protected green belt. The twin tunnels are being constructed using mechanised tunnelling methods that aim to limit surface di..

Next Story
Infrastructure Transport

UP Approves Two Expressways And Rs 240 bn Infrastructure Push

The Uttar Pradesh Cabinet approved a series of infrastructure and industrial investment proposals totalling Rs 240 billion (Rs 240 bn), including two major expressway projects, a manufacturing and logistics cluster in Sultanpur and incentives for 11 industrial projects across the state. The decisions, taken at a meeting chaired by Chief Minister Yogi Adityanath, underline the state government’s focus on expanding road connectivity around emerging industrial hubs while attracting manufacturing investment to districts beyond major urban centres. The approvals cover both greenfield expressway c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code