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