HUDCO approves up to Rs 750 crore fundraising via NCDs; stock reacts

Housing & Urban Development Corporation (HUDCO) Ltd on Friday approved raising funds of up to Rs 750 crore via non-convertible debentures (NCDs) on a private placement basis. The issuance comprises unsecured, taxable, redeemable and non-convertible debentures with a face value of Rs 1,00,000 each.

The issue includes a base size of Rs 500 crore, with an additional green shoe option of Rs 250 crore, allowing the company flexibility to increase the deal size based on investor demand.

"This is to inform that the 'Bond Allotment Committee' in their meeting held today i.e., June 6, 2025, has approved the raising of Debentures as Unsecured, Taxable, Redeemable, Non-Convertible, Non- Cumulative NCDs of face value of Rs 1,00,000 each (Series-C 2025) aggregating up to Rs 750.00 Crore on Private Placement basis," it stated in an exchange filing.

Following this development, HUDCO's stock moved up 2.58 per cent to hit a day high of Rs 248.15. It was last seen trading 1.82 per cent up at Rs 246.30. At this price, the scrip has climbed 13.03 per cent in the past one month.

On BSE, around 5.98 lakh shares changed hands today. The figure was lower than the two-week average volume of 6.31 lakh shares. Turnover on the counter came at Rs 14.66 crore, commanding a market capitalisation (m-cap) of Rs 49,336.83 crore.

The scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 62.37. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-earnings (P/E) ratio of 18.06 against a price-to-book (P/B) value of 3.08. 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 1.7, indicating high volatility.

As of March 2025, the government held a 75 per cent stake in the state-run housing firm.