HUDCO shares drop over 4% as Board approves ₹65,000 crore fundraise and higher borrowing limit

Shares of Housing & Urban Development Corporation (HUDCO) fell over 4 percent in intraday trading on Friday, April 4, after the company’s board approved a significant fundraising plan and an increase in its borrowing limit. The stock decline reflects investor concerns over the company’s rising debt levels, despite the potential for growth and expansion through these financial measures.

In a regulatory filing, HUDCO stated that its board, in a meeting held on April 4, 2025, approved an annual fundraising plan of up to ₹65,000 crore for the financial year 2025-26. The actual funds raised will depend on the company's requirements throughout the year.

Additionally, the board approved an increase in HUDCO’s overall borrowing limit from ₹1,50,000 crore to ₹2,50,000 crore. This expansion in the borrowing capacity is subject to shareholder approval under Section 180(1)(c) of the Companies Act, 2013.

"Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that the Board of Directors, in their meeting held on 4thApril, 2025 i.e., inter-alia considered and approved:

i. Annual Resource plan/ Borrowing programme (raising of funds) up to a maximum amount of Rs.65,000 Crore during the financial year 2025-26, depending upon actual funds requirement; and

ii. Increase in overall borrowing limit to Rs.2,50,000 Crore from existing limit of Rs.1,50,000 Crore as earlier approved by shareholders u/s 180(1)(c) of the Companies Act, 2013, subject to the approval of same by Shareholders," it said in a regulatory filing.

Stock Price Trend

The stock fell as much as 4.2 percent to its day's low of ₹200.80. It has currently lost over 43 percent of its investor wealth from its peak of ₹353.95, hit in July 2024. Meanwhile, it hit its 52-week low of ₹158.90 in last month.

The PSU Stock has added 4 percent in the last 1 year. Moreover, in March, it jumped around 21 percent following 3 straight months of losses. It shed over 28 percent in February, 2 percent in January and 1.6 percent in December.

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