Housing & Urban Development Corporation Ltd (HUDCO) experienced a significant downturn in Wednesday’s trading session following the commencement of the Centre’s stake sale. The stock plummeted by 9.51 percent in the morning session as the government initiated the sale of up to 7 percent of its stake in the state-run housing finance company through an offer for sale (OFS), as per a filing with the stock exchange.
The OFS involves the sale of 3.5 percent of the company, with an additional option to sell another 3.5 percent if the offer receives oversubscription. The floor price for this sale has been established at Rs 79 per share.
Currently, the Centre holds an 81.81 percent stake in the housing finance firm, and the sale of the 7 percent stake aims to generate approximately Rs 1,100 crore.
As of 1:20 PM, HUDCO shares were trading at ₹81.15, marking a notable decline of 9.78 percent. Investors closely monitor the unfolding developments in this significant stake sale.
“7,00,66,500 shares and additional option to sell up to 7,00,66,500 shares (oversubscription option). Total shares (base size + green shoe) 14,01,33,000. The seller shall intimate the stock exchanges of its intention to exercise the oversubscription after trading hours (i.e. on or before 5 pm) on October 18, 2023. The stake sale will help the government to achieve the minimum public shareholding norm set out by the capital market regulator SEBI, the exchange filing stated.
