HUDCO to raise Rs 1,905 crore via 7-year NCDs at 6.98% coupon
HUDCO · price
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On the reaction day the stock moved 0.7 pts less than Nifty Midcap 150 and in line with its Financial Institution peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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HUDCO's Bond Allotment Committee approved raising up to Rs 1,905 crore through unsecured, taxable, redeemable non-convertible debentures on private placement basis. Base size is Rs 500 crore with a green shoe option of Rs 1,405 crore. Each NCD has face value of Rs 1 lakh, 7-year tenure with annual interest at 6.98 percent, redeemable at par in December 2032. NCDs will be listed on BSE. HUDCO is a Navratna CPSE.
Rs 1,905 cr debt raise at 6.98% via 7-year NCDs expands HUDCO's lending capacity. Coupon competitive for a Navratna CPSE. Neutral for stock.