HUDCO shares surge 29 percent on trading debut
- Author: Zachary Reyes May 20, 2017,
May 20, 2017, 11:44
The stock listed at Rs 73.45, a sharp gain of 22.41 per cent against the issue price, on BSE. The shares jumped to a high of Rs 77.80 apiece. The IPO of Housing and Urban Development Corporation (HUDCO) saw huge demand from investors and was oversubscribed 79.53 times.
Hudco made a strong debut on bourses on Friday.
Currently, shares are trading at Rs 75.40, up 25.67% from its issue price. The minimum order quantity was one lot wherein the lot size was 200 shares per lot.
Hudco had set a price band of Rs 56 to Rs 60 per share for its initial public offering (IPO) which opened on May 8, 2017 and closed on May 11, 2017.
The IPO received bids worth Rs 97,000 crore.
Retail investors bid for almost 10.61 times or 74.32 crore shares of the 7 crore shares reserved.
Hudco had reported a net profit of Rs 496 crore on net interest income (NII) of Rs 1,104 crore for the first nine months of last fiscal. Through the sale, the government aims to sell 10.19% stake in the company which is engaged in wholesale funding and providing loans for housing and urban infrastructure projects.
The IPO is a part of the government's disinvestment programme.
After witnessing a bumper subscription, state-run HUDCO listed at 21.5 percent premium at Rs 73.55 on the exchanges.
The HUDCO issue is the first IPO of a Central Public Sector Enterprise (CPSE) since April 2012. IDBI Capital Markets and Securities, ICICI Securities, Nomura Financial Advisory and Securities (India) and SBI Capital Markets were the book running lead managers to the offer.