HUDCO expects to meet sanction, disbursal targets

Housing and Urban Development Corporation (HUDCO) expects to meet the sanctioning and disbursal targets for this fiscal at Rs 22,000 crore and over Rs 6,000 crore, respectively. Meanwhile, it is learnt that HUDCO would spend the Rs 2,216 crore raised through tax-free bond issue on for lending to low-cost housing and urban infrastructure projects. Agency reports suggest that the company's bond issue, which opened on January 9 and closed on February 7, was oversubscribed by about three times. The corporation set the size of the issue at Rs 750 crore with an option to retain over-subscription up to Rs 5,000 crore. The company has raised Rs 1,402 crore from retail investors, of which Rs 801 crore came from retail investors investing up to Rs 10 lakh and the remaining Rs 601 crore from high-net worth individuals (HNIs), reports suggest. It may be noted that the corporation is allowed to raise up to Rs 5,000 crore by the finance ministry. Of this, it raised Rs 2,216 crore and it is considering to mop up the balance before this fiscal. HUDCO, a mini-ratna firm, is a financial institution that provides long-term finance for housing and urban infrastructure projects. The company posted a net profit of Rs 630.33 crore over a gross income of Rs 2,778.63 crore in 2011-12 fiscal.