Hudco pares gains after strong stock-market debut
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State-owned Housing and Urban Development Corporation Ltd (Hudco) surged as much as 30% on its stock-market debut on Friday, before trimming gains to end 21% higher on the first day of trading.

Shares of the housing and urban infrastructure financier began trading on the BSE at Rs 73.45 apiece, up 22% from the initial public offering price of Rs 60, stock-exchange data showed. The shares jumped to a high of Rs 77.80 apiece, before closing at Rs 72.50.

Benchmark indices also surrendered early gains to end flat on Friday. The NSE Nifty ended in the red after rising nearly 1% to record levels. On Thursday, the 50-share index had declined more than 1%, its biggest one-day fall in four months as investors booked profits on recent gains and global markets grappled with political uncertainty in the US.

Hudco’s positive start follows an IPO that was subscribed nearly 80 times. The value of bids received was the third-highest ever among the IPOs of all public-sector undertakings (PSUs).

The government sold a 10.2% stake through the IPO and raised Rs 1,224.35 crore. The company did not sell any fresh shares.

Hudco is the first state-owned firm to go public since National Building Construction Corporation Ltd floated its public offering in March 2012.

Hudco had filed the draft red herring prospectus for an initial share sale on 2 January, and received clearance from the Securities and Exchange Board of India on 10 March.

The company’s IPO is part of the government’s record disinvestment programme, through which it is looking to raise Rs 72,500 crore in 2017-18.

Of the total, the Centre aims to garner Rs 46,500 crore from minority stake sales in new listings as well as listed firms, Rs 15,000 crore from strategic sales and Rs 11,000 crore through listing of state-owned insurance companies, budget documents show.

Apart from Hudco, the government has initiated share sale in unlisted companies such as Cochin Shipyard Ltd, IRCTC, IRFC and Ircon International.

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