HUDCO announces ₹2,842.50 crore fundraising via private placement; share price rebounds from day's low

HUDCO (Housing & Urban Development Corporation) share price, after declining about 2 per cent in intraday trade on Wednesday, March 12, rebounded from the day's low after the financial firm announced its bond allotment committee approved the raising of bonds aggregating up to ₹2,842.50 crore on private placement basis.

HUDCO share price opened at ₹182.70 against its previous close of ₹181.60 and dropped nearly 2 per cent to the level of ₹178.10. The stock, however, pared losses, trading 0.39 per cent lower at ₹180.90 around 1:40 PM.

HUDCO to raise NCDs for ₹2,842.50 crore

Through an exchange filing during market hours on March 12, HUDCO announced that its "bond allotment committee on March 12 approved the raising of bonds as unsecured, taxable, redeemable, non-convertible, non-cumulative NCDs (non-convertible debentures) of the face value of ₹1 lakh each (series F 2024), aggregating up to ₹2,842.50 crore on private placement basis."

NCDs are fixed-income instruments issued by companies to raise funds. They offer a fixed interest rate over a set term without any option for conversion into stocks.

According to the exchange filing, the base issue size is ₹700 crore. The total issue size is ₹2,842.50 crore, with a green shoe option of ₹2,142.50 crore.

The green shoe option means the issuer can retain excess subscriptions beyond the initially offered amount by issuing more NCDs than originally planned if investor demand is strong.

The issue carries a 7.37 per cent coupon rate, and interest and principal payments are scheduled for March 12 annually from 2026 to 2035.

HUDCO share price trend

HUDCO share price has been under pressure over the last year, falling over 7 per cent as of March 11 close.

The stock hit a 52-week high of ₹353.95 on July 12 after hitting a 52-week low of ₹152.65 on March 14 last year.

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