NEW DELHI: The Rs 1,224 crore initial public offering (IPO) of state-run Housing and Urban Development Corporation (Hudco), a 'Miniratna' firm, will hit the capital market on Monday.The government intends to sell 2,04,058,747 shares in the Rs 56-60 price band. The issue closes of on May 11.The company focuses mainly on loans to state governments and agencies and plans to grow the housing finance portfolio going ahead. Out of the total of Rs 36,386 crore total outstanding loans, the housing finance business accounts for 30.9 per cent, while urban infrastructure finance loans and project-linked bonds account for the rest 69.1 per cent.The government plans to dilute 10.19 per cent holding through this IPO. Going ahead, with government’s focus on improving urban infrastructure along with initiatives such as Housing for All by 2020, 100 Smart Cities, etc., HUDCO has good opportunity for growth. However, net profit grew at 7% CAGR during FY12-FY16 which was weighed down by high provisioning against bad loans during the same period.

Source: Economic Times May 08, 2017 02:48 UTC