Hudco shares close 21% up in stock market debut after IPO


Mumbai: Shares of Housing and Urban Development Corp. Ltd (Hudco) made a stellar debut on the stock exchanges, jumping 27.8%, after its IPO issue was subscribed nearly 80 times last week.

The government-run company’s offer opened at Rs73.45 and touched a high and a low of Rs76.70 and Rs70.55, separately.

The scrip, in any case, close at Rs72.50, up 20.83% from its issue cost of Rs60 an offer.

India’s benchmark Sensex record rose 0.10% to 30,464.92 points.

The issue was open from 8-11 May, with a value band of Rs56-60 each. Through the deal, the administration intends to offer 10.19% stake in the organization which is occupied with discount subsidizing and giving advances to lodging and urban foundation ventures.

The part held for qualified institutional purchasers (QIBs) was subscribed 55.45 times, while non-institutional speculators saw a membership of 330.36 times and retail financial specialists’ classification was subscribed around 11 times.

Urban framework ventures identifying with water supply, streets, transport and power represent 69% of Hudco’s credit book. The adjust 31% goes to lodging money.

Hudco revealed net non-performing resources (NPAs) and net NPAs of 6.80% and 1.51%, separately, in the initial nine months of FY2017. The high NPA level was because of extensive defaults from some privately owned businesses to which it had past presentation, while its NPAs from the administration division is just 0.75%, said Angel Broking in a note on 4 May.

According to Angel Broking, Hudco has already made substantial provisions on private sector NPAs and stopped lending to them from FY2013, and hence, material change is not expected in NPAs in the near term. “Further, a provisioning coverage ratio of 72% lends enough comfort on the loan book,” it said