President of India-Backed Financial Institution Approved the Raising of Bonds Upto Rs 2,842.50 Crore
The stock gave multibagger returns of over 400 per cent in just 3 years whereas the BSE Sensex Index is up by 34 per cent.
The Housing and Urban Development Corporation Limited (HUDCO) announced that its Bond Allotment Committee, in a meeting held on March 12, 2025, approved the issuance of Unsecured, Taxable, Redeemable, Non-Convertible, Non-Cumulative NCDs (Series -F 2024). These bonds, with a face value of Rs 1,00,000 each, will be raised through private placement, aggregating up to Rs 2,842.50 crore. The issue comprises a base size of Rs 700 Crore and a green shoe option of Rs 2,142.50 crore. These details are disclosed as per Regulation 30 of SEBI LODR in conjunction with the SEBI Master Circular dated November 11, 2024. The NCDs will be listed on the BSE and carry a tenure of 10 years, maturing on March 12, 2035. The coupon rate is set at 7.37 per cent, with interest payments scheduled annually on March 12th of each year from 2026 to 2035, coinciding with the principal redemption. The bonds are unsecured, meaning no specific assets are pledged as collateral.
Additionally, HUDCO has approved the declaration of a second interim dividend of Rs 1.05 per equity share, representing 10.50 per cent of the Rs 10 face value, for the financial year 2024-25, subject to tax deduction at source (TDS). The record date for determining shareholder eligibility for this dividend has been set for Friday, March 14, 2025, and the dividend payment process is slated for completion within 30 days of its declaration.
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Housing and Urban Development Corporation Limited provides financial assistance for housing and urban infrastructure development projects. The Company offers loans for housing projects such as urban and rural housing, community toilets, water supply, roads and transports, and power projects. Housing and Urban Development serves customers in India. The company has a market cap of over Rs 36,000 crore and its maximum stake is owned by the President of India (75 per cent as of September 2024). Additionally, the Life Insurance Corporation of India (LIC) own a 7.44 per cent stake in the company.
The stock gave multibagger returns of over 400 per cent in just 3 years whereas the BSE Sensex Index is up by 34 per cent. Investors should keep an eye on this mid-cap PSU stock.
Disclaimer: The article is for informational purposes only and not investment advice.