HUDCO share price: At a day low of Rs 81.22, the shares plummeted 9.51 percent. As per a filing with the stock exchange, the government is offering to sell up to 7% of the state-run home finance company through an offer for sale (OFS).
As the Center’s stake sale got underway, shares of Housing & Urban Development Corporation Ltd. (HUDCO) plummeted during Wednesday’s trading session. The stock fell 9.51% and closed the day at Rs 81.22. As per a filing with the stock exchange, the government is offering to sell up to 7% of the state-run home finance company through an offer for sale (OFS).
Under the terms of the OFS, 3.5% of the company will be sold, with the possibility to sell an extra 3.5% in the event that the offer is exceeded. A floor price of Rs 79 per share has been set for the transaction.
The Centre currently holds 81.81 percent of the home finance company; by selling a 7% interest, it may be able to generate almost Rs 1,100 crore.
7,00,66,500 shares with an extra share sale option (oversubscription option) up to 7,00,66,500 shares. 14,01,33,000 shares total (basic size plus green shoe). The seller must notify the stock exchanges of its plan to exercise the oversubscription on October 18, 2023, after trading hours, i.e., by 5 p.m.
According to the exchange filing, the stake sale will assist the government in meeting the minimum public shareholding standard established by capital market regulator SEBI.
According to minimum public shareholding standards, listed businesses must keep at least 25% of their shares in the public market.
The counter was trading higher than the 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs) but lower than the 5-day, 10-, 20-, and 30-day SMAs based on technical setup. The relative strength index (RSI) for the counter after 14 days was 44.99. Oversold is defined as a level below 30, and overbought is defined as a value beyond 70. In comparison to the price-to-book (P/B) ratio of 1.17, the company’s stock has a price-to-equity (P/E) ratio of 10.37.
With a one-year beta of 1.33, the stock exhibits minimal volatility.
Over the past six months, the stock has increased by about 79%, and year to date (YTD), it has increased by 52%.
Today’s trade saw a decline in Indian equities benchmarks, led by stocks in consumer, technology, banking, and banking sectors.
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On September 18, CNBC-TV18 claimed that surplus government ownership in state-run companies had the potential to raise up to Rs 1.9 lakh crore.
The government has reduced its ownership of SJVN Ltd. by more than 4% following the company’s first-ever 100% stock rise in 2023.
Shweta Daptardar of Elara Capital stated that the current values of HUDCO are attractive in an interview with CNBC-TV18.
HUDCO’s stock has increased by 60% in 2023 thus far. According to the most recent shareholding pattern, the government owns 81.8% of the business. Should the entire 7% share be sold in the OFS, the government’s share will drop to 74.8%, which is less than the required 75%.
At Rs 82.2, HUDCO’s shares are currently down 8.6%. Since December 2022, this is the largest single-day decline in the stock.
Concerning HUDCO
On April 25, 1970, the firm was issued a certificate of incorporation by the then-Registrar of Companies, Delhi, and was incorporated as “The Housing and Urban Development Finance Corporation Private Limited” as a private limited company under the Companies Act, 1956. The company’s name was subsequently changed to “Housing and Urban Development Corporation Limited,” and on July 9, 1974, the then-Registrar of Companies, Delhi & Haryana, issued a new certificate of registration.
The Department of Company Affairs, Ministry of Finance, Government of India, notified our company on December 9, 1996, that it was a public financial institution under Section 4A of the Companies Act, 1956. Additionally, on July 31, 2001, the NHB granted us a certificate of registration, enabling us to conduct business as a housing finance institution,” the company’s website states.
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