Govt to sell up to 7% stake in HUDCO: Government will sell its 1000 Cr stake in this company, panic in the market, race to sell shares, price reached ₹ 81.15

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HUDCO SHARE PRICE NEWS: HUDCO stock has shown impressive returns in 2023, with a 73 percent increase. Over shorter periods, it has returned 23 percent in one month, 52 percent in three months, 99 percent in six months, and 151 percent in one year.

The company currently boasts a market capitalization of Rs 18,000 crore.

HUDCO Limited Stock Performance

HUDCO Limited has delivered a remarkable 12 percent return for investors in the past month, rising from Rs 72 to its current level.

In a day marked, HUDCO shares experienced a drop of approximately ten percent, trading at Rs 81.40.

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Govt to sell up to 7% stake in HUDCO
Govt to sell up to 7% stake in HUDCO

52-Week Highs and Lows

  • HUDCO Limited, with a market capitalization of around Rs 16,300 crore, reached a 52-week high of Rs 96 and a 52-week low of Rs 34.

Govt to sell up to 7% stake in HUDCO

The central government is planning to divest a 7 percent stake in HUDCO through an offer for sale, scheduled for October 18-19, with a goal of raising Rs 1,100 crore.

The central government is offering a 7 percent stake in the public sector housing finance company HUDCO. Non-retail investors can bid on October 18, and retail investors on October 19, 2023.

The floor price for HUDCO’s offer for sale has been set at Rs 79 per share, representing a 12.20 percent discount from the closing price of Rs 81.15 on October 18.

Disinvestment Strategy

The central government aims to lower its stake in HUDCO from the current 81.8 percent to 74.8 percent by selling seven percent of its stake. This is in line with the government’s disinvestment strategy to comply with SEBI rules.

Overall Disinvestment Target

In the current financial year, the central government has set a target of raising Rs 51,000 crore from disinvestment, and as of October 17, it has only collected Rs 6,950 crore.

Key Stake Sales

The Modi government has previously divested stakes in various companies.

  • Coal India Limited (3 percent)
  • Rail Vikas Nigam Limited (5.36 percent)
  • Satluj Jal Vidyut Nigam (4.5 percent).

Green Shoe Option

  • The government has also included a 3.7 percent equity under the Green Shoe option, meaning that if more than 7 percent of the offer for sale is subscribed, an additional 3.5 percent stake can be sold.

Participation Details

  • On October 18, non-retail investors can participate in the offer for sale, while on October 19, retail investors can bid for shares. Bidding will occur during the trading session on stock exchanges, and the brokers for this offer for sale are IDBI Capital Markets and SBICAP Securities.

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