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HUDCO makes stellar market debut, shares surge over 22%

19 May 2017

Housing and Urban Development Corporation (HUDCO) has debuted on exchange at a premium of 21.5 percent at Rs 73.55/share. The much-awaited stock was listed at a price Rs 73.45 and touched Rs 70.55 within two and half hours of the grand debut.

HUDCO made an intra-day high of Rs 77.80 in the early morning session on Friday, thus clocking a gain of 28.3 per cent from its issue price.

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Last year, companies raised $4 billion from initial public offerings, the highest amount in six years.

At about 11.10 am, the stock was up at Rs 74.50 on the BSE. The extraordinary over-subscription is a testimony of faith reposed by investors in a company backed by quality leadership and management, strong business model and a great track record.

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The portion reserved for qualified institutional buyers (QIBs) was subscribed 55.45 times, the quota for non-institutional investors was subscribed 330.36 times and the retail investor quota almost 11 times. The qualified institutional buyer (QIB) portion was subscribed 55.45 times, non-institutional investors a staggering 330.36 times and retail investors 10.79 times.

The IPO of HUDCO received bids worth Rs 97,000 crore. At the issue price of Rs 60, Hudco shares were valued at 1.35 times its FY2017 estimated book value, which is a reasonable valuation, said Angel Broking.

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ICICI Securities, SBI Capital Markets, IDBI Capital Markets, Nomura and a few others were the leading funds to the issue.

HUDCO makes stellar market debut, shares surge over 22%