HUDCO Share Price: Stock Falls by 9.51% to Reach a Low of INR 81.22 in a Single Day
The Housing and Urban Development Corporation Limited (HUDCO) recently experienced a huge decline in the price of its shares, which fell by 9.51% to reach INR 81.22 in a single trading day. The government is reportedly offering a share of up to 7% in the state-run housing finance company through an Offer for Sale (OFS), according to information published by the stock exchange.
The price of HUDCO shares significantly dropped during the Wednesday trading session as soon as the government’s stake sale started, reaching a daily low of INR 81.22. 3.5% of the company’s equity will be sold as part of the OFS, with an extra 3.5% potentially available in the event of an oversubscription. At least INR has been fixed as the minimum floor price for the sale.
The sale of 7% of HUDCO’s shares in the home finance company might generate about INR 1,100 crore. HUDCO now owns 81.81% of the company.
A total of 14,013,300 shares are offered for purchase, with options to sell up to 7,006,650 shares and an additional 7,006,650 shares (oversubscription option). On October 18, 2023, at 5:00 PM or earlier, sellers must inform stock exchanges of their plans to employ the oversubscription option after trading hours. The sale of shares will help the government achieve the minimum public shareholding requirements set by the capital market regulator, SEBI, according to the exchange filing.
HUDCO share price OFS Opens Today: HUDCO Shares Tumble by Up to 9% on BSE at INR 81.80
The Housing and Urban Development Corporation (HUDCO) saw a reduction in its share prices, with a decline of up to 9% on the Bombay Stock Exchange (BSE), hitting INR 81.80 on Wednesday, according to a government declaration issued barely a day after the transaction was made public. At a minimum price of INR 79 per share, the government is offering a 7% ownership in the business.
Today marks the start of the Offer for Sale (OFS) for the sale of more than 14.01 crore shares, or 7% equity. On Thursday, retail investors may place a bid for HUDCO shares. The 7% share sale in HUDCO at INR 79 per share will net the government about INR 1,000 crore.
Starting tomorrow, retail investors can start submitting their offers for shares of HUDCO. The government will sell 7% of its equity, with a 3.5% green-shoe option, according to a tweet from Tuhin Kant Pandey, secretary of the Department of Investment and Public Asset Management (DIPAM).
The minimum share price of INR 79 represents a 12% discount from HUDCO’s Tuesday closing share price on the BSE, which was INR 89.92.
It is clear from the shareholding pattern data that the government presently owns 81.81% of the corporation.
The HUDCO share price
On April 25, 1970, the firm was initially founded as a private limited company under the Companies Act, 1956, with the name “The Housing and Urban Development Finance Corporation Private Limited,” and immediate registration was given by the Registrar of Companies, Delhi. The firm then changed its name to its current form, “Housing and Urban Development Corporation Limited,” and on July 9, 1974, the Registrar of Companies, Delhi and Haryana, issued a new certificate of registration.
The Department of Company Affairs, Ministry of Finance, Government of India, notified our company on December 9, 1996, that it was a Public Financial Institution under Section 4A of the Companies Act, 1956. Additionally, we received a registration certificate on July 31, 2001, allowing us to carry on with our work as a housing finance institution, according to the business’ website.
