Hudco To Go Live On BSE on May 19; 5 Facts About The Entity

After seeing a good response on day one (it was subscribed 63 per cent) , the initial public offering (IPO) of the Housing and Urban Development Corporation (Hudco) got subscribed nearly 80 times on May 11. The stage is now set for the government entity to go live on the Bombay Stock Exchange.

Earlier, Hudco had fixed a price band of Rs 56-60 per equity share.

The IPO consists of 20.41 crore shares as the government plans to offload 10.19 per cent stake in the entity.

Here are five things to know about the Hudco:

Hudco is a wholly-owned government company with more than 46 years of experience. A Miniratna enterprise, it has been providing loans for housing and urban infrastructure projects. The housing loans provided by the entity are classified into different categories such as social housing, residential real estate and retail finance.

Hudco also provides loans for projects relating to water supply, roads and transport, power and emerging sectors, which includes special economic zones, industrial infrastructure, gas pipelines, oil terminals and telecom sector projects. For urban infrastructure projects, the agency lends only to state government. It stopped lending to private players in 2013.

"Loans for urban housing schemes are provided to housing boards, development authorities, city improvement trusts, municipal corporations, public sector undertakings, state governments and other such organisations for the construction of houses/flats and development serviced plots, including site and services, skeletal housing and core housing schemes," says Hudco.

Projects funded by the agency include urban and rural housing projects meant for low-and-middle income groups, staff rental housing, slum rehabilitation, public sector housing projects and co-operative housing societies.

While Hudco has lent to a total of 1,4860 housing schemes, it provided funds to 29 housing schemes as of March 2017. In case of urban infrastructure, the total number stands at 2,227 and 149 till March this year.

As on December, 2016, Hudco has provided loans worth Rs 36,386 crore, with 30.9 per cent to housing finance and 69.1 per cent to urban infrastructure projects. Till date it helped build over 1.6 crore dwelling units.

Credit rating agencies such as CARE, ICRA and IRRPL have assigned a high rating to Hudco's domestic bond. This indicates towards the stable profile.

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