On Thursday, the share price of Housing & Urban Development Corporation Limited (HUDCO) surged by over 3%, following the company’s announcement of its plan to generate up to ₹2,000 crore through a private placement of debt securities. This uptick saw HUDCO shares rise by as much as 3.48%, reaching ₹203.50 on the Bombay Stock Exchange (BSE).
HUDCO’s Strategic Move to Boost Capital
In a meeting convened on March 27, HUDCO’s board sanctioned the issuance of Unsecured, Taxable, Redeemable, Non-Convertible, Non-Cumulative Debentures (NCDs). Each debenture will have a face value of ₹1,00,000 and is categorized as Series-G 2024. The announcement was officially made in a regulatory filing, detailing the approval by the company’s Bond Allotment Committee.
- Total Fundraising Capacity: Up to ₹2,000 crore
- Base Size: ₹500 crore
- Green Shoe Option: Additional ₹1,500 crore
- Tenure of Bonds: 10 years
- Coupon Rate: 7.19%
Overview of the Bond Issue
This bond issue is structured to provide substantial capital for HUDCO’s operations while allowing for flexibility in fundraising. The bonds will be listed on the BSE and will promise annual interest payments. Investors can anticipate redemption at par upon maturity, making this an attractive investment opportunity.
Performance Insights
In terms of market performance, HUDCO’s shares have shown a 16% increase over the past month. However, the stock has faced challenges, experiencing a 15.5% decline year-to-date and a 16% drop over the past six months. Despite these fluctuations, the long-term outlook remains bright; HUDCO has delivered remarkable returns, boasting a 390% increase over the last two years and an astounding 925% growth in the past five years.
At around 2:40 PM, HUDCO shares were trading at ₹200.20, marking a 1.81% rise for the day. This reflects the market’s positive response to the company’s strategic financial maneuvers.
Conclusion
With HUDCO’s latest bond placement, the company is positioning itself for growth and stability in the evolving market landscape. As investors weigh the benefits of this new offering against the backdrop of current stock performance, HUDCO continues to be a noteworthy player in the public sector landscape. For more updates on HUDCO and other financial news, stay tuned to our coverage.
