As reported by Moneycontrol, the central government has decided to sell up to 16 crore shares or around 8 percent stake in the government-owned Housing and Urban Development Corporation Limited (HUDCO) via an offer for sale (OFS) on July 27-28.
According to a regulatory filing, the floor price for the offer has been fixed at ₹45 per equity share.
Offer for Sale of GoI equity in HUDCO opens tomorrow for Non-Retail investors. Day 2 for Retail investors. Government would divest 5.5% shares with an additional 2.5% as Green Shoe Option. pic.twitter.com/b3b4Uc7qpV
— Secretary, DIPAM (@SecyDIPAM) July 26, 2021
India’s President Ram Nath Kovind, acting through the Ministry of Housing and Urban Affairs, Government of India, has concurred with the share sale in HUDCO via OFS.
On July 27 i.e. day 1, HUDCO has a target of selling up to 11,01,04,500 equity shares having a face value of ₹10 each and a representation of 5.5 percent of the company’s total paid-up equity share capital.
The Bombay Stock Exchange (BSE) filing has pointed out the possibility of HUDCO using the option to additionally sell 5,00,47,500, which is around 2.5 percent equity shares of the company (the Oversubscription option) on Day 2 of the OFS.
Furthermore, it stated, “And in event the Oversubscription option is exercised, the equity shares forming part of the Base Offer Size and the Oversubscription Option will represent 16,01,52,000 (8 percent) of the outstanding equity shares of the company.”
Non-retail investors will be able to place their bids on “T day” which is 27th July. As per the filing, while placing their bids, non-retail investors may indicate their desire to “carry forward their un-allotted bids to T+1 day, that is July 28” in order to provide them with allocation in Retail Category’s unsubscribed portion.