HUDCO approves raising funds of up to Rs 2,000 crore; stock climbs

Housing & Urban Development Corporation (HUDCO) Ltd on Thursday cleared raising funds of up to Rs 2,000 crore via non-convertible debentures (NCDs) on a private placement basis. "This is to inform that the 'Bond Allotment Committee' in their meeting held today i.e., March 27, 2025, has approved the raising of Bonds as Unsecured, Taxable, Redeemable, Non-Convertible, Non-Cumulative NCDs of face value of Rs 1,00,000 each (Series-G 2024) aggregating up to Rs 2,000 Crore on Private Placement basis," the PSU stated in a BSE filing.

It mentioned that the base issue size has been fixed at Rs 500 crore along with a green shoe option of Rs 1,500 crore.

Following this development, HUDCO's stock moved up 3.48 per cent to hit an intraday high of Rs 203.50. It eventually settled 2.06 per cent up at Rs 200.70. At this price, the scrip has slipped 15.57 per cent on a year-to-date (YTD) basis.

On BSE, around 3.95 lakh shares changed hands today. The figure was lower than the two-week average volume of 5.68 lakh shares. Turnover on the counter came at Rs 7.95 crore, commanding a market capitalisation (m-cap) of Rs 40,088.05 crore.

The stock traded higher than the 10-day, 20-, 30-day and 50-day simple moving averages (SMAs) but lower than the 5-day, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 56.59. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 14.68 against a price-to-book (P/B) value of 2.50. Earnings per share (EPS) stood at 13.40 with a return on equity (RoE) of 17.05. According to Trendlyne data, HUDCO has a one-year beta of 2, indicating high volatility.

As of December 2024, promoters held a 75 per cent stake in the state-run housing firm.