HUDCO raises funds through retail investors

CMD confident that the company would achieve the sanctioning and disbursal targets for this fiscal

GN Bureau | September 12, 2013



Housing and Urban Development Corporation (HUDCO), a mini-ratna firm has raised funds from retail investors besides the tax-free bonds public issues recently, said chairman and managing director, V P Baligar.

The company has raised Rs 1,402 crore from retail investors, of which Rs 801 crore came from retail investors investing up to Rs 10 lakh and the remaining Rs 601 crore from high-net worth individuals (HNIs).

Also, it raised Rs 2,216 crore through public issue of tax-free bonds. The issue size was Rs 750 crore with an option to retain over-subscription up to Rs 5,000 crore. The issue, which was launched on January 9, closed on February 7. For retail investors, HUDCO offered a higher coupon rate of 8.01 percent per annum for 15 years maturity period and 7.84 percent for 10 years.

Baligar said the company has been allowed to raise up to Rs 5,000 crore by the finance ministry. It has already garnered Rs 2,216 crore and it is considering raising the balance before this fiscal.

Baligar is confident that the company would achieve the sanctioning and disbursal targets for this fiscal at Rs 22,000 crore and over Rs 6,000 crore, respectively. The funds would be used for lending to low-cost housing and urban infrastructure projects.

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