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PSU Disinvestment: Govt announces sale of 8% stake in HUDCO via OFS

Continuing aggressive sale of stake in PSUs the Govt has announced to sell up to 8% stake (including green shoe option) in the state-run HUDCO via an offer for sale (OFS) on July 27-28
PSU Disinvestment: Govt announces sale of 8% stake in HUDCO via OFS
PSU Disinvestment: Govt announces sale of 8% stake in HUDCO via OFS

New Delhi: The government on Monday announced that the offer for sale (OFS) for Government's equity in the state-run Housing & Urban Development Corporation Ltd (HUDCO) will open on Tuesday, July 27. The Govt has decided to sell up to 16 crore shares or around an 8 percent stake in HUDCO. The OFS will open for non-retail investors on July 27. "Government would divest 5.5% shares with an additional 2.5% as Green Shoe Option" Secretary, Department of Investment and Public Asset Management (DIPAM) tweeted Monday evening.

The floor price for the offer has been fixed as Rs 45 per equity share, a regulatory filing noted.

President Ram Nath Kovind, acting through the Ministry of Housing and Urban Affairs, Government of India, gave the nod for the share sale in HUDCO via the OFS route.

"On Day 1, that is July 27, HUDCO aims to sell up to 11,01,04,500 equity shares of the face value of Rs 10 each, representing 5.5 percent of the total paid-up equity share capital of the company. HUDCO may also use the option to additionally sell 5,00,47,500 (2.5 percent) equity shares of the company (the "Oversubscription Option") on Day 2 of the OFS", HUDCO said in a filing to the stock exchanges.

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"And in the event, the Oversubscription Option is exercised, the equity shares forming part of the Base Offer Size and the Oversubscription Option will represent 16,01,52,000 (8 percent) of the outstanding equity shares of the Company," it added.

Notably, the OFS shall take place during trading hours on a separate window of the Stock Exchanges on July 27, 2021 ("T" day) and July 28, 2021 ("T+1" day), from 9:15 a.m. to 3:30 p.m. (Indian Standard Time) on both days.

"Non-Retail Investors can place their bids only on the T day, that is July 27. While placing their bids the non-retail Investors may indicate their willingness to carry forward their un-allotted bids to T+1 day, that is July 28, "for allocation to them in the unsubscribed portion of Retail Category", the regulatory filing stated.

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