Govt to sell up to 7% stake in HUDCO via OFS on Oct 18-19, likely to raise ₹1,100 crore

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₹79 per share, 12 percent lower as against the closing price of ₹89 per share on the BSE on October 17. The government expects to raise about ₹1,100 crore via the stake sale, as it would be offloading a total of around 14 crore shares. On the first day of the OFS, a total of 7 crore shares would be offered for sale, accounting for 3.5 percent of HUDCO's overall stake.

The base offer would be followed by an oversubscription option on the next day, the exchange filing said, adding that size of greenshoe option will also be 7 crore shares or 3.5 percent stake. The first day of the offer would be open for retail investors, followed by the second day when non-retail investors would be allowed to place bids. There will be no retail discount for the offer, the exchange filing clarified.

Elara Securities (India), IDBI Capital Markets & Securities and SBICAP Securities will be brokers for the offer, it noted. The OFS is being undertaken to achieve minimum shareholding of the company as per the norms laid down by the Securities and Exchange Board of India (SEBI), the filing said. The Centre owns 81.8 percent in the housing finance company, and by offloading 7 percent shares, it stake would come down to 74.8 percent – below the permissible cap of 75 percent.