The Housing and Urban Development Corporation Ltd (HUDCO) is set to convene its Bond Allotment Committee on May 6, 2025, to explore potential fundraising through debt issuance. This meeting aims to discuss a significant fundraising strategy, targeting up to ₹65,000 crore through the issuance of bonds and debentures during the financial year 2025-26. According to an official exchange filing, the committee plans to approve the issuance of Unsecured, Taxable, Redeemable, Non-Convertible, Non-Cumulative NCDs with a face value of ₹1,00,000 each, totaling up to ₹3,000 crore via private placement.
HUDCO’s Fundraising Strategy
- Meeting Date: May 6, 2025
- Total Fundraising Target: ₹65,000 crore
- Type of Bonds: Unsecured, Taxable, Redeemable NCDs
- Face Value: ₹1,00,000 each
- Total Issue Amount: ₹3,000 crore
In previous communications, HUDCO has acknowledged the difficulties it faces in executing large-scale projects independently due to financing limitations. Often, the corporation finds itself in need of partnering with consortiums to manage extensive projects. Despite this, HUDCO has expressed a desire to lead projects on its own terms. This approach allows the firm to maintain control over the project’s conditions and oversight while managing its borrowing efficiently.
Growth and Performance Metrics
During its earnings update for the December quarter, HUDCO increased its borrowing target for FY25 to ₹55,000 crore, rising from a previous target of ₹40,000 crore. This adjustment reflects a substantial uptick in business activity. As of March 31, 2025, the corporation reported an impressive 123% year-over-year increase in loan disbursements, reaching a total of ₹40,037 crore for the fiscal year. Additionally, loan sanctions soared by over 55%, amounting to ₹1.28 lakh crore.
"Hudco has sustained its growth trajectory and recorded unparalleled business performance, achieving the highest loan sanctions and disbursements ever for the fiscal year ending March 31, 2025," the company stated.
Current Share Performance
According to Rajesh Bhosale, an Equity Technical and Derivative Analyst at Angel One, HUDCO shares are currently on an upward trend. However, they have encountered resistance around the 200-day Simple Moving Average (SMA) positioned at around ₹230. A significant price movement is anticipated if the stock closes above this level. Conversely, should there be a downturn, strong support is identified at approximately ₹210.
As HUDCO continues to navigate its ambitious funding plans and growth initiatives, industry watchers will be keenly observing how these developments unfold. For more updates on HUDCO and its performance, check back regularly.
