Last updated on April 30th, 2017
HUDCO IPO Review
Housing and Urban Development COmpany (HUDCO) is a government owned company who is very popular for providing loans for housing and urban infrastructure project is coming up with Initial Public Offer. In this Review of HUDCO IPO, We try to bring out the important information about the IPO price bands, issue dates, financial performance, subscription details and Grey market Premium.
The Hudco IPO is the first divestment by a government-owned entity this year. The central government, which has set a target of raising Rs72,500 crore through different routes, has taken various steps and listing of state owned companies like HUDCO is one of them.
HUDCO IPO : Important figures and schedule
HUDCO IPO Details
|Issue Period||Issue Opens On: Monday, May 8, 2017|
|Issue Closes On : Thursday, May 11, 2017|
|Price Band||Rs.56 – Rs.60|
|Bid Lot||200 Equity Shares and multiple thereof|
|Issue Size ( in Rs.)||204,058,747 Equity Shares aggregating to Rs. 1127.94 Crs at Lower band & Rs. 1209.57 Crs at upper Band.
Employee Reservation Up to 3,868,747 Equity Shares aggregating to Rs. 20.89 Crs at lower band & Rs. 22.44 Crs at upper band
|QIB||50% of the Issue|
|NIB||15% of the Issue|
|Retail||35% of the Issue|
|Registrar||Alankit Assignments Limited.|
|Draft Prospectus||HUDCO Draft Red Herring Prospectus|
HUDCO Background Information
Hudco is a key player in finance sector providing loans for housing and urban infrastructure projects in India for more than 46 years.
It provides housing loans across three categories namely social housing, residential real estate and retail finance
HUDCO has been conferred the Miniratna status (Category-I public sector enterprise) by the government of India.
Hudco’s total outstanding loan portfolio as of 31 December was Rs36,385.8 crore, comprising 30.86% of housing finance loans and 69.14% of urban infrastructure finance loans and project-linked bonds.
As far as Urban Infrastructure is concerned Hudco lends for projects relating to water supply, roads and transport.
It also lends for emerging sectors like special economic zones, industrial infrastructure, gas pipelines, oil terminals and telecom sector projects; commercial infrastructure and others, which includes shopping centres, market complexes, malls-cum-multiplexes, hotels and office buildings.
HUDCO : Financial Details
HUDCO reported revenue of Rs3,350 crore in financial year 2015-16, compared with Rs3,427.8 crore in the previous year. In 2015-16, the company reported a profit of Rs810.6 crore, compared with Rs768.3 crore in the previous year
|HUDCO financial performance (in Cr)|
|Profit after tax||621||699||734||768||810|
Earning Per Share (EPS) : 3.87 (For FY 2016)
Expected PE (for Upper band of Rs 60) : 15.6
Expected PE (for Lower band of Rs 56) : 14.4
HUDCO IPO Analysis : Should you apply?
If you have to list down the reasons to subscribe to HUDCO IPO, then the foremost reason has to be Pradhan Mantri Awas Yojna. This company is going to play key role in Mr.Narendra Modi’s vision of “House for all” by 2022 hence has good growth potential.
Normally PSUs are good dividend payers. Hence if you are looking for hefty dividend income, you may consider HUDCO.
Apart from that there is good chances of making nice listing gains but keep watch on Grey Market Premiums (GMP) and Subscription figures.
If you are looking for listing gains, we suggest to wait until third day and see how the subscription figures are from major players like Mutual Fund houses and then apply for it if there is a over subscription. These fund houses do in depth analysis and IPOs with their over subscription usually tend do well on listing and also on next few quarters.
Major reason not to invest in HUDCO IPO should be because of the fact that PSUs are never known for creating wealth for investors. They are blamed for mismanagement of business because of more than expected interference from the government babus.
HUDCO IPO Subscription Details
Please check below table at the end of each day to know the subscription details
|Category||Subscription (No. of times)|
|Day 1||Day 2||Day 3|
HUDCO Contact Details
India Habitat Centre,
New Delhi 110 003
HUDCO IPO Allotment Status
Please visit this page after the HUDCO IPO issue close date to know about the IPO allotment status
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Disclaimer: The information is sourced from company’s DRHP and this article should not be considered as an investment advice. In case you are interested in applying to this IPO, we recommend you to contact your advisor for the same. We cannot be held liable for any loss arising due to investment made as per this article.