Hudco Share Price Jump Over 6% After Signing ₹1.5 Trillion MoU with MMRDA

Housing and Urban Development Corporation (Hudco) share price surged over 6% on Tuesday after the company signed a Memorandum of Understanding (MoU) with the Mumbai Metropolitan Region Development Authority (MMRDA). This agreement involves providing ₹1.5 trillion in funding over five years for infrastructure development.

Hudco’s stock climbed 6.57% during the day to ₹207.7 per share, marking its biggest intraday gain since March 19, 2024. By 2:45 PM, the stock was up 6.26% at ₹207.09, while the Nifty 50 rose 1.76%.

The stock also ended its two-day losing streak. However, Hudco shares have declined 11.9% this year, compared to a 4.7% drop in the Nifty 50. The company’s market capitalisation currently stands at ₹41,459.3 crore, as per BSE data.

MoU with MMRDA

In an official statement, Hudco announced that the MoU aims to explore funding opportunities for infrastructure projects in the Mumbai Metropolitan Region. Additionally, Hudco will provide consultancy services and capacity-building support to help MMRDA meet its growing needs.

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Increased Borrowing Plans

Last week, Hudco’s board approved a borrowing program of up to ₹65,000 crore for FY 2025-26, depending on funding requirements. The board also raised the company’s borrowing limit to ₹2.5 trillion, up from the existing ₹1.5 trillion.

About Hudco

Hudco is a public sector company that provides loans for housing and urban infrastructure projects, with a strong focus on social housing and urban development. It supports projects initiated by State Housing Boards, Development Authorities, Improvement Trusts, and Cooperative Housing Societies. The company holds Navratna status, a recognition granted by the Government of India.

Financial Performance

Hudco reported a net profit of ₹735 crore in Q3 FY25, marking a 41.6% year-on-year (Y-o-Y) increase. For the first nine months of FY25 (9M FY25), net profit grew by 39.87% Y-o-Y to ₹1,981.40 crore, while revenue rose 30.55% Y-o-Y to ₹7,466.13 crore.

Conclusion

Hudco’s agreement with MMRDA is expected to strengthen its position in urban infrastructure financing. With rising demand for housing and city development, the company is set to play a key role in supporting government-led projects while expanding its financial capabilities.

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