Indian government to sell up to 7% stake in HUDCO (updated)

Housing and Urban Development

17/10/2023 13:50

(Adds detail)
       NEW DELHI, Oct 17 (Reuters) - The Indian government will
sell up to a 7% stake in state-run housing finance company,
Housing and Urban Development Corp. HUDC.NS , through an offer
for sale this week, according to a filing with the stock
exchange.
    The plan includes selling 3.5% of the company, with an
option to sell an additional 3.5% if the offer is
oversubscribed.
    The floor price for the sale has been set at 79 rupees a
share, a discount of about 12% to the stock's closing price on
Tuesday. 
    The Indian government owns 81.81% in the housing finance
company, and the sale of a 7% stake may help it to raise about
11 billion rupees ($132.20 million). 
    The federal government has so far garnered 69.5 billion
rupees by selling shares in public sector units in 2023/24,
compared with a target of 510 billion rupees.
    The stake sale will help the government to achieve the
minimum public shareholding norm set out by the capital market
regulator, the exchange filing said.
    Minimum public shareholding norms require listed companies
to maintain a public float of at least 25%.

    


($1 = 83.2173 Indian rupees)

 (Reporting by Nikunj Ohri; editing by Christina Fincher and
Sharon Singleton)
 ((nikunj.ohri@thomsonreuters.com; +91 90284 60730; Reuters
Messaging: twitter.com/nikunj_ohri))