New Delhi: Shares of Housing and Urban Development Corporation (HUDCO) rose nearly 4% on Thursday, hitting a day’s high of ₹184.69 on the NSE, after the company signed a Memorandum of Understanding (MoU) with the Government of Bihar to provide financial assistance of up to ₹25,000 crore.
According to an exchange filing, the MoU will facilitate financing for the development of industrial infrastructure in Bihar, including land acquisition for industrial park projects. The financial assistance will be provided over a period of five years.
HUDCO to Provide Up to ₹25,000 Crore for Bihar Industrial Infrastructure
Under the MoU, the Government of Bihar is developing industrial park projects across different districts of the state. These projects require timely availability of land and supporting infrastructure.
The Infrastructure Development Authority, Bihar (IDA) has been entrusted with facilitating and/or implementing identified infrastructure development initiatives, including industrial parks.
The authority may undertake activities such as:
- Acquisition and purchase of land
- Consolidation and development of land
- Development of enabling infrastructure
- Planning and implementation of industrial park projects
HUDCO will support the planning, development and financing of these projects in a time-bound manner in accordance with applicable state government rules and regulations.
Read also: HUDCO Signs Urban Infrastructure MoU with Uttarakhand, Focus on DPRs and Project Financing
Loan to Be Provided in Tranches with Flexible Repayment Terms
Under the agreement, the loan will be availed in tranches by the statutory authority specifically designated by the Bihar government.
HUDCO will provide funds on flexible terms and conditions, including:
- A moratorium period
- Flexible repayment schedule of up to 25 years
- Option for prepayment
The loans will be repaid through an escrow of revenue generated from the projects or by ring-fencing other identified revenue sources, receivables or allocations from the state budget.
The MoU will remain valid for three years from the date of execution, subject to annual review.
HUDCO Had Signed ₹1 Lakh Crore Bihar MoU in July
The latest agreement follows another major MoU signed by HUDCO with the Government of Bihar in July 2026.
Under that agreement, HUDCO had proposed providing term loans of up to ₹1 lakh crore over five years for various urban infrastructure projects, including land acquisition.
The earlier MoU was aimed at supporting the planning, development and financing of proposed Greenfield Satellite Cities in Bihar.
Similar flexible financing terms were provided under the earlier agreement, including a moratorium, repayment period of up to 25 years and an option for prepayment.
Government to Transfer HUDCO Shares Between Ministries
Separately, HUDCO disclosed that the Government of India has decided to transfer shares held by the Ministry of Rural Development to the Ministry of Housing and Urban Affairs, while retaining its overall 75% stake in the company.
The decision was conveyed through a DIPAM Office Memorandum dated September 1, 2026.
Currently, the government’s shareholding is held through:
- Ministry of Rural Development: 20.73%
- Ministry of Housing and Urban Affairs: 54.27%
- Total Government stake: 75%
The transfer changes the ministry through which part of the government’s holding is represented, without altering the overall government ownership in HUDCO.
HUDCO Stock Performance in 2026
Despite Thursday’s rise, HUDCO shares have remained under pressure over the broader periods mentioned in the company-related market data.
The stock has:
- Declined 19.68% so far in 2026
- Fallen around 15.54% over the past one year
- Gained around 139% over three years
- Gained around 321% over five years
The latest Bihar agreement has therefore provided a fresh market trigger for the stock amid HUDCO’s expanding financing role in major infrastructure projects.
HUDCO Reports 35% Rise in Q1 FY27 Net Profit
HUDCO reported strong financial performance in the quarter ended June 2026.
On a consolidated basis, the company’s net profit increased 35.05% to ₹851.11 crore in Q1 June 2026, compared with ₹630.13 crore in the corresponding quarter of the previous year.
Its net sales rose 26.55% to ₹3,717.17 crore during the quarter from ₹2,937.44 crore in Q1 June 2025.
About HUDCO
Housing and Urban Development Corporation (HUDCO) is a premier techno-financing public sector enterprise focused on housing and infrastructure development in India. The company was upgraded to a Schedule-A PSE in 2002 and received Navratna status in 2024, strengthening its role in financing housing and infrastructure projects across the country.
Read also: HUDCO 56th AGM: Record ₹4,034 Crore Profit and ₹1.64 Lakh Crore Loan Sanctions in FY26
