HUDCO shares jump 7%-here is what is fuelling the rally

HUDCO stake sale, HUDCO share price: Shares of state-owned Housing and Urban Development Corporation Ltd (HUDCO) zoomed in early morning deals on Monday, February 26, after the company informed the exchanges on February 23 that it would sell a 0.17 per cent stake through the open market.

The HUDCO stock rose as much as 7.2 per cent to the day's high of Rs 213.8 on the NSE in early morning deals, continuing the rising trend for the second trading session. The counter settled at Rs 203.8, down by Rs 4.45 or 2.23 per cent on NSE.

The counter, which has been instrumental in the implementation of various initiatives in urban infrastructure and social housing projects, traded 3.76 per cent higher at Rs 206.85 on the NSE at 10:07 AM.

Here are other key details.

What is the purpose of the sale?

The seller has conveyed its intention to undertake the proposed sale to comply with the minimum public shareholding norm of 25 per cent, according to the filing.

Who is the promoter?

The President of India, the shareholding promoter of the company, proposes to divest part of its shareholding in the company.

What is the total number of shares and percentage for sale?

The government will sell 33.70 lakh shares through the open market (0.17 per cent.)

What is the period for the entire divestment?

The target is to complete sales within 12 months in a single or multiple tranches.

How did HUDCO perform in Q3?

HUDCO reported a more than two-fold rise in standalone profit after tax to Rs 519.19 crore in the three months ended December 2023.

Revenue from operations in the latest December quarter increased 18 per cent to Rs 2,012.66 crore.

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