Housing And Urban Development Corporation Ltd OR HUDCO (a government of India company) are coming up with their initial public offering in early April 2017. Let’s discuss the HUDCO IPO review and the chance of making money investing in Housing And Urban Development Corporation Ltd IPO.
Issue Date: May 08, 2017 – May 11, 2017
Face Value: Rs. 10
Offer Price Band: Rs. 56 – Rs. 60 per equity share
Minimum Application: 200 shares (tentative)
Issue Size: 1000.95 crores (tentative)
Listing Exchange: NSE / BSE
The objective of the issue:
1) To dis-investment 200.2 million shares of HUDCO through this IPO
2) Exchange listing benefits
HUDCO has been incorporated in 1970 and is providing growths for housing and urban infrastructure in India. The company provides loans, the business process for loans, consultancy services, government programmes, sources of fundings etc related to housing and urban infrastructure development.
Being an India government company, the President of India is the promoter of the company who is working through the ministries. One can know more about the company at official HUDCO site HERE.
From the image above we can see the companies turnover has increased steadily during FY 2012 to FY 2015 and then the turnover is steady around the same range. While profitability has increased steadily over the financial years. In the first 6 months of FY 2017, the company has made a profit of Rs. 348.20 crores against a turnover of Rs. 1748.20 crores.
HUDCO IPO Review
Housing And Urban Development Corporation Ltd is a profit-making government organization and previously also we have seen good money made by dis-investment of government companies. Though the grey market premium of HUDCO IPO is now hovering just below Rs. 30 now, looking at the strong financials and bright future prospects we expect decent listing gains in this IPO. I recommend a BUY for medium to long term to my blog readers. Comments are welcome below.