HUDCO IPO oversubscribed 42 times on last day
Murugappa Group company Cholamandalam Investment and Finance Company Ltd has inked a “strategic partnership” with Housing and Urban Development Corporation Ltd (HUDCO) to offer loans for customers under the Credit Link subsidy scheme. This translates into bids worth Rs 97,274 crore – the third-highest for an IPO of a state-run company. The shares of the company are proposed to be listed on BSE as well as NSE.
The IPO had covered almost two-third of the total subscription amount on the first day of bidding on Monday. Retail investors portions was oversubscribed 1.52 times. According to the latest figures, the institutional part was subscribed almost 55.5 times while the HNI part was subscribed more than 330 times and the retail part was subscribed almost 11 times.
The IPO is following the book-building process wherein the price band is pegged at Rs 56 to Rs 60 per equity share.
The grey market is an over-the-counter market where IPO shares are traded before the official listing on a stock exchange. The government has disinvested 10.19 per cent of its stake in this IPO.
The government-owned corporation is lily to raise over Rs. 1,120 crore through its IPO as part of government’s efforts to meet its disinvestment target, reported the MoneyControl.
Apart from Hudco, the government has initiated share sale in Cochin Shipyard Ltd, IRCTC, IRFC and Ircon International.
HUDCO is a wholly-owned government company which provides loans for housing and urban infrastructure projects in India. The data shows that the issue got subscribed by 79.31 times.