HUDCO bonds issue oversubscribed; gets bid for Rs 1,076 cr so far
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HUDCO bonds issue oversubscribed; gets bid for Rs 1,076 cr so far

Last Updated: Friday, September 20, 2013, 18:18
 
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HUDCO bonds issue oversubscribed; gets bid for Rs 1,076 cr so far
New Delhi: State-owned Housing and Urban Development Corporation (HUDCO) on Friday said its public issue of tax-free bonds has been oversubscribed about 1.5 times with company receiving bids worth Rs 1,076 crore so far.

The bond issue hit the market on September 17 and would close on October 14. The issue size is Rs 750 crore with an option to retain over-subscription upto Rs 4,809.20 crore.

"Our bonds are doing well. We have crossed Rs 1,000 crore. The issue has been over-subscribed by 150 per cent so far against the issue size of Rs 750 crore. We hope to raise the entire amount of Rs 4,810 crore before issue closes," HUDCO Chairman and Managing Director V P Baligar told the agency.

The Finance Ministry has allowed HUDCO to raise Rs 5,000 crore through bonds during this fiscal, of which Rs 190.8 crore has been raised last month through private placement to institutional investors.

The funds would be utilised to finance the government's housing and urban infrastructure projects, Baligar added.

For retail investors applying for bonds upto Rs 10 lakh, the coupon rate shall be 8.39 percent per annum for 10 years, 8.76 percent for 15 years and 8.74 percent for 20 years.

The Bonds bear a coupon rate of 8.14 percent per annum for 10 years, 8.51 percent for 15 years and 8.49 percent for 20 years for Qualified Institutional buyers (QIB), corporates and high networth individuals (HNIs).

This is the first public issue of tax-free bonds by HUDCO in this fiscal. The company had raised about Rs 2,400 crore during last fiscal.

HUDCO, a mini-ratna firm, is a techno-financial institution engaged in the financing and promotion of housing and urban infrastructure projects throughout India.

The company posted a net profit of Rs 700 crore over a total revenue of Rs 2,923 crore during last fiscal. It had sanctioned projects worth Rs 23,000 crore and disbursed Rs 6,000 crore in 2012-13 fiscal.

PTI



First Published: Friday, September 20, 2013, 18:15


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