Hudco IPO subscribed nearly 80 times

The initial public offering (IPO) of state-owned Housing and Urban Development Corporation, which has seen robust investor demand, was subscribed 79.49 times on the final day of offer, Thursday. The IPO received bids for over 16 billion shares. P15

The initial public offering (IPO) of state-owned Housing and Urban Development Corporation (Hudco), which has seen robust investor demand, was subscribed 79.49 times on the final day of offer, Thursday.

The IPO to raise ~1,224 crore received bids for 16,22,12,70,600 shares against the total issue size of 20,40,58,747 shares, data available with the NSE till 1915 hours showed.

The category reserved for qualified institutional buyers (QIBs) was subscribed 55.45 times and non-institutional investors 330.36 times, sources said. The portion for retail investors was also subscribed 10.60 times.

Hudco, a 'Miniratna' firm which provides loans for housing and urban infrastructure projects, has fixed the price band at ~56-60 per equity share.

The company has appointed IDBI Capital Markets, SBI Capital Markets, Nomura and ICICI Securities as the bookrunning lead managers to the issue. The shares of the company are proposed to be listed on the BSE as well as the NSE.

Of the total outstanding loan of ~36,385 crore as of December 31, 2016, Hudco has financed 69 per cent to urban infrastructure projects and 31 per cent to the housing sector.

Earlier this year, the IPO of Avenue Supermarts, the operator of retail chain D-Mart, was subscribed 104.48 times.