Government targets Rs. 720 crore from 8% stake sale in HUDCO.

The government's up to 8 per cent stake sale in HUDCO at a floor price of Rs. 45 apiece would open for institutional investors. The sale of over 16.01 crore shares, or a total of 8 per cent stake, would fetch around Rs. 720 crore to the exchequer.

The government is selling over 5 per cent stake or over 11.01 crore shares, with an option to retain over-subscription of 2.5 per cent or over 5 crore shares, through an offer-for -sale (OFS).

"Offer for Sale of GoI equity in HUDCO opens tomorrow for Non-Retail investors. Day 2 for Retail investors. Government would divest 5.5 per cent shares with an additional 2.5 per cent as Green Shoe Option," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted.

Shares of HUDCO closed at Rs. 47.20 apiece, down 6.81 per cent on the BSE.

The floor price of Rs. 45 a share for the OFS is at a discount of 4.66 per cent over Monday's closing price.

The government has already raised over Rs. 7,646 crore through minority stake sale. Of this, Rs. 3,651 crore is from NMDC OFS and Rs. 3,994 crore from sale of SUUTI stake in Axis Bank.

ET