The Housing and Urban Development Corporation (HUDCO) is experiencing a surge in its share prices following a significant approval from the Central Board of Direct Taxes (CBDT), part of the Ministry of Finance. This approval allows HUDCO to raise ₹5,000 crore through Zero Coupon Bonds, a move that has investors buzzing. This development, announced in a BSE filing on April 21, is poised to strengthen HUDCO’s financial position and expand its funding capabilities.
Zero Coupon Bonds: A Unique Financial Instrument
The recently approved fundraising initiative involves the issuance of five lakh Zero Coupon Bonds with a duration of ten years and one month. At maturity, HUDCO will repay ₹5,000 for each bond. Unlike traditional bonds, Zero Coupon Bonds do not provide periodic interest payments. Instead, they are sold at a discount to their face value, which can be an attractive option for investors looking for long-term gains.
- Total Fundraising Amount: ₹5,000 crore
- Bond Tenure: 10 years and 1 month
- Repayment at Maturity: ₹5,000 per bond
In its exchange filing, HUDCO stated, “We are pleased to announce that the CBDT has authorized us to issue Five Lakh Zero Coupon Bonds, as detailed in Notification No. S.O. 1744(E) dated April 17, 2025.”
HUDCO’s Stock Performance
In response to this positive news, HUDCO stocks rose by 2.62%, closing at ₹234.90 compared to the previous close of ₹228.90. Over the last five years, investors in HUDCO have enjoyed impressive returns exceeding 990%, while the past year alone has seen returns of more than 20%.
Despite this growth, HUDCO shares have faced some challenges, experiencing a slight decline of over 1% year-to-date in 2025. The stock hit a 52-week high of ₹353.95 on July 12, 2024, and reached a 52-week low of ₹158.90 on March 3, 2025, according to BSE data.
Recent Market Trends
In the past month, HUDCO shares have rebounded, gaining 15.83%, with nearly 9% growth in the last five trading sessions. As of the latest session, HUDCO’s market capitalization stands at ₹47,024.63 crore, reflecting its robust market presence.
Conclusion
The approval for the Zero Coupon Bonds is a significant milestone for HUDCO, enhancing its financial flexibility and investment potential. As the company navigates the markets, investors will be watching closely to see how this fundraising initiative impacts its growth trajectory and share performance moving forward.
