HUDCO shares hit all-time high; Doubles in value from its listing price

The Housing & Urban Development Corporation Limited is primarily engaged in financing housing and urban development activities in the country. Today, the company experienced a significant surge in its share price.

At the start of the trading session, the stock opened at Rs 100.89 per share, signalling an approximate 1.4% increase compared to the previous day’s closing figure of Rs 99.54 per share on the BSE. The stock reached the upper circuit price limit of 20% at around 12:30 PM, showcasing strong market demand as no sellers were offering shares. As of the time of writing this article, the shares are currently trading at Rs 114.28 per share on the BSE, representing an increase of approximately 15% compared to the previous day’s closing price.

Furthermore, the company’s stock crossed its previous all-time price of Rs 102.30, which was registered in July 2017, and began trading in the blue-sky zone. Moreover, the stock has doubled in price compared to the IPO issue price of Rs 60 per share, as it reached today’s high of Rs 119.55 per share.

The company’s current market capitalization stands at Rs 22,305 crore, and the stock has generated an impressive return of 97% during the past one year and around 177% return in the past three years.

Stock Price Chart (Monthly) 

Stock’s Daily Trade and Delivery Volume: 

IPO Flashback 

HUDCO’s IPO was launched in 2017 to raise Rs 1,224 crore. During the IPO window, the company witnessed a subscription rate of 79.53 times as of May 11, 2017, the final day. Subscriptions in different categories stood at 10.79 times in the retail category, 55.45 times in the QIB category, and an impressive 330.36 times in the NII category.

The price range offered by the company was between Rs 56 to Rs 60 per share, with a face value of Rs 10 per share. On May 19, 2017, the stock debuted in the market at a premium of 22.4%, opening at Rs 73.45 per share on the BSE. Ultimately, it concluded the listing day at Rs 72.50 per share.

Business Overview:

The Housing and Urban Development Corporation Ltd (HUDCO) is a wholly-owned government company with over four decades of experience in providing loans for housing and urban infrastructure projects in India. It provides long-term finance for the construction of houses and undertakes housing and urban infrastructure development programs. Apart from its financing operations, HUDCO offers consultancy services, promotes research, and studies, and helps propagate the use of local building materials, and cost-effective, and innovative construction technologies.

It offers loans for various housing projects, including urban and rural housing, cooperative housing, community toilets, slum upgradation, staff housing, repairs and renewals, private sector projects, land acquisition, and housing programs. It also provides take-out finance for housing and infrastructure projects to state governments, public agencies, and private corporate sector agencies.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.