IPO: Housing and Urban Development Corporation Ltd.
Company & Business Profile
Housing and Urban Development Corporation Limited (“HUDCO”) was incorporated on 25th April, 1970. HUDCO is a wholly-owned government company. The company was incorporated as “The Housing and Urban Development Finance Corporation Private Limited” as a private limited company under the Companies Act, 1956. The company was notified as a Public Financial Institution on December 9, 1996, by the Department of Company Affairs, Ministry of Finance, and Government of India. The “National Housing Bank” issued a certificate of registration to HUDCO on July 31, 2001, permitting HUDCO to carry on the business of a housing finance institution.
Objects of the Issue:
To carry out the disinvestment of 204,058,747 equity shares by the selling shareholder constituting 10.19% of the company’s pre-offer paid up equity share capital. To achieve the benefits of listing the equity shares on the stock exchanges.
Outlook & Valuations:
- The issue has been offered in a price band of Rs 56-60 per equity share. At the upper price band the stock is available at P/E of 18 (x) based on annualized EPS of FY17E financials. Industry composite PE for the company stands at 30 (x). However, the RoE for the stock is 7.59% for Dec’FY16. We have “4 star” rating for the issue.
- We recommend subscribing to the issue.
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