Dynamite News HUDCO's IPO sees phenomenal market response
"The main aim is to ensure that the public can validate the functioning of these companies. Furthermore, it will also enable them to borrow capital from the market and ensure listing on the exchange," Gupta said.
New Delhi: After its Initial Public Offering (IPO) was welcomed with positivity by the market, Department of Investment and Public Asset Management ( DIPAM) Secretary Neeraj Kumar Gupta said the subscription will help enhance the growth of Central public sector units ( PSU) in the country.
"The main aim is to ensure that the public can validate the functioning of these companies. Furthermore, it will also enable them to borrow capital from the market and ensure listing on the exchange," Gupta told.
Speaking on the phenomenal response to its IPO, Neeraj said the retail sector recorded an oversubscription up to the extent of 125 percent.
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"The retail participation instigated further subscription, and subsequently we received full subscription," he added.
The market on Monday witnessed the IPO of the Government-owned Housing and Urban Development Corporation HUDCO in an attempt to raise funds.
The corporation is looking to raise over Rs. 1,120 crore through its IPO as part of the government's efforts to meet its disinvestment target, reported the MoneyControl.
The price band has been set in the range of Rs. 56-60 per share. The issue comprises sale of 20 crore equity shares (10 percent paid-up capital) by the central government through an offer for sale (OFS).
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The IPO is likely to close on May 11.
HUDCO is a wholly-owned government company which provides loans for housing and urban infrastructure projects in India.
As of September 30, the total assets under management ( AUMs) are to the tune of Rs. 36,110 crore, which includes housing finance assets of Rs. 11,290 crore and urban infrastructure finances of Rs. 24,820 crore.( ANI)