Corporate Valuations - News Hudco files for IPO; government to sell 10% stake : news

Hudco files for IPO; government to sell 10% stake

Date: 5-January-2017

Housing and Urban Development Corporation Ltd (Hudco) has filed draft documents for an initial share sale, seeking to become the first state-run company to go public in nearly five years. The government will sell 200.2 million shares in Hudco through the IPO, according to the draft red herring prospectus filed with the capital markets regulator Securities and Exchange Board of India. The IPO is part of the central government’s disinvestment programme through which it aims to Rs 56,500 crore in the financial year ending in March. Of the total, the government was looking to fetch Rs 36,000 crore from minority stake sale and the balance amount from strategic sale in companies like Hindustan Zinc Ltd and Bharat Aluminium Co Ltd. The IPO is estimated to be worth Rs 1,000 crore, said two bankers involved in the sale. This will value the New Delhi-based company at Rs 10,000 crore. For the six months ended September 2016, Hudco reported a consolidated profit after tax of Rs 520.17 crore on consolidated revenue (operations) of Rs 1,700.14 crore. For 2015-16, Hudco reported consolidated revenue of Rs 3204.81 crore and profit after tax of Rs 1,076.86 crore.

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