Miniratna category I Central Public Sector Enterprise engaged in the business of financing housing and urban development activities jumped 9 percent after executing an MOU worth Rs.14,500 Crores with the government of Gujarat.
In the day’s trade, the shares of Housing and Urban Development Corporation Limited (HUDCO) closed at Rs. 115.20, up 9 percent from its previous day’s close price of Rs.105.50 and its market capitalization is Rs. 23,082 Crores.
Housing and Urban Development Corporation Limited (HUDCO) has executed a Memorandum of Understanding(MOU) with the State Government of Gujarat for an investment of up to Rs.14,500 Crore for financing the Housing and Urban Infrastructure projects in the State of Gujarat.
HUDCO expressed its interest in executing this MoU under the Financial Services Sector in the form of financial assistance, as per its objectives and guidelines to the State Government of Gujarat for eligible sector projects through term loans for Infrastructure projects
The State Government of Gujarat intends for the overall development of the State of Gujarat by implementing various housing and infrastructure projects in the State of Gujarat.
In addition to this In October 2023, the government of India sold 7 percent of its stake in the company through an Offer for Sale(OFS) at a floor price of Rs. 79 per equity share.
Housing & Urban Development Corporation Limited is primarily engaged in the business of financing housing and urban development activities in the country. As of Q2FY24, HUDCO has given sanctions of Rs 7,808 Crores and disbursements of Rs. 3,723 Crores.
Its revenue from operations grew 1.97 percent from Rs. 6,954.08 Crores in FY22 to Rs. 7,049.46 Crores in FY23, accompanied by profits of Rs. 1,716.41 Crores to Rs. 1,701.43 Crores.
It has reported a return on equity (ROE) of 11.38 percent and a return on capital employed (ROCE) of 8.81 percent, it is making decent returns on its equity and capital employed.
According to the latest shareholding data available for the September 2023 quarter, the company’s Promoters hold 81.81 percent stake, the Domestic Institutional Investors hold 7.14 percent and the Foreign Institutional Investors (FII) hold 0.65 percent.
Written by: Bharath K.S
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