HUDCO To Raise Rs 750 Crore Through Private Placement of NCDs

Mumbai, June 6 | 2025: Housing and Urban Development Corporation Ltd (NSE: HUDCO, BSE: 540530), a Navratna Central Public Sector Enterprise (CPSE), has approved the issuance of unsecured, taxable, redeemable, non-convertible, and non-cumulative debentures (NCDs) amounting to ₹750 crore via private placement.

HUDCO’s share price opened at ₹242.65, slightly up from the previous close of ₹241.94, with a trading volume of over 13.3 million shares and a VWAP of ₹244.02. The stock fluctuated between ₹239.06 and ₹248.20 during the day. With a market cap of ₹49,306 crore and a 52-week high of ₹353.70, HUDCO’s TTM EPS rose by 27.97% YoY to 13.53, reflecting solid performance against an average PE of 18.20 and a high P/B ratio of 2.88.

Issue Details

HUDCO’s Bond Allotment Committee approved the Series-C 2025 NCDs in a meeting held today. The bonds are planned for listing on BSE. Key information includes:

Compliance and Governance

HUDCO confirmed that there have been no delays or defaults in paying interest or principal exceeding three months. No adverse remarks were received from credit rating agencies or trustees concerning payment matters. The NCDs carry no special rights or privileges, and no redemption of preference shares is involved. The Bond Allotment Committee meeting started at 2:00 p.m. and ended at 2:15 p.m., as per official filings.

HUDCO’s ₹750 Crore NCD Issue Strengthens Funding for Urban Development Initiatives

HUDCO has been actively mobilizing resources through debt instruments to support the Government of India’s focus on urban infrastructure and affordable housing. In recent years, the company has consistently raised funds via tax-free and taxable bonds, often through private placements, to meet its expanding financing requirements.

This latest ₹750 crore NCD issuance, approved by the Bond Allotment Committee, aligns with HUDCO’s ongoing strategy to diversify its funding sources beyond traditional bank borrowings. The unsecured nature of these bonds reflects HUDCO’s strong credit profile, supported by government ownership.

Furthermore, HUDCO’s financing supports key urban development initiatives like Smart Cities and AMRUT (Atal Mission for Rejuvenation and Urban Transformation), which require substantial long-term capital. The company’s focus on sustainable and inclusive urban growth makes such bond issues essential to maintain steady funding flows for these projects.

The coupon rate of 6.52% per annum and three-year maturity is consistent with HUDCO’s past issuances, maintaining alignment with current interest rate trends. The bonds’ listing on BSE enhances transparency and regulatory compliance in line with corporate governance norms.

HUDCO’s robust financial discipline is evident in its clean track record with no delays or defaults in payments, and no special privileges attached to the instruments. This issue is part of HUDCO’s broader commitment to “Financing Assets for Viksit Bharat,” reflecting the government’s agenda for infrastructure-led growth.

REF: https://nsearchives.nseindia.com/corporate/HUDCO_06062025143047_REG51BSENSE06062025.pdf

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