https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

HUDCO Pulls Back Rs 3,000 Crore NCD Issue, Cites Unfavorable Coupon Rates

HUDCO Suspends Bond Issue Plan as Coupon Rates Surge. HUDCO had announced on August 25 its intention to raise Rs 3,000 crore through a private placement of NCDs.
World Habitat Day 2025
Indian Masterminds Stories

New Delhi: Housing and Urban Development Corporation Limited (HUDCO), the state-owned enterprise specializing in housing and infrastructure financing, has withdrawn its plan to raise up to Rs 3,000 crore through non-convertible debentures (NCDs). The move comes due to higher-than-expected coupon rates, making the proposed bond issue financially unviable.

Bond Allotment Committee Meeting Cancelled

In a regulatory filing on Thursday, HUDCO announced the cancellation of its Bond Allotment Committee meeting, which was scheduled for August 29. The meeting was intended to approve the issue and allotment of unsecured, taxable, redeemable, non-convertible, non-cumulative debentures of face value Rs 1 lakh each (Series-E 2025). However, the committee meeting was called off following the decision to withdraw the bond issue.

The company clarified that no allotment of securities had been made following its initial announcement, so investors remain unaffected by this withdrawal.

Initial Bond Issue Plan Part of Larger Borrowing Programme

HUDCO had announced on August 25 its intention to raise Rs 3,000 crore through a private placement of NCDs. This bond issue was part of a larger borrowing program totaling Rs 65,000 crore approved for the financial year 2025-26. The withdrawal signals the company’s cautious approach amid rising coupon rates in the bond market.

HUDCO’s Strong Financial Performance

Despite the withdrawal, HUDCO continues to demonstrate robust financial health. For the first quarter of FY26, the company reported a 13% year-on-year rise in consolidated net profit, reaching Rs 630.23 crore compared to Rs 557.75 crore in the same period last year. Total income also increased substantially to Rs 2,945.47 crore from Rs 2,197.19 crore.

The company has declared its first interim dividend of Rs 1.15 per equity share for FY 2025-26, reflecting confidence in its ongoing profitability and financial management.

What This Means for Investors

HUDCO’s decision to withdraw the bond issue due to higher coupon rates highlights the current challenges in the debt market, where borrowing costs have risen. Investors looking forward to the NCD issuance will need to wait for future opportunities, as HUDCO continues to monitor market conditions before proceeding with new debt instruments.

About HUDCO

Housing and Urban Development Corporation Ltd. (HUDCO) is a Government of India-owned public sector enterprise under the Ministry of Housing and Urban Affairs (MoHUA). Established in 1970, HUDCO primarily focuses on financing housing and urban infrastructure development projects across India.

Read also: HUDCO Signs MoU with MoHUA for FY 2025-26, Targets ‘Excellent’ Performance Benchmarks


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
Mohan Yadav
Thousands of Tribal Homes to Shine Brighter: MP Cabinet Clears Rs 78.94 Crore PM-JANMAN Electrification Plan
Mazagon_Dock_Shipbuilders_and_SDHI_Sign_
Mazagon Dock and Swan Defence Strategic Partnership to Build Advanced Landing Platform Docks for Indian Navy
Uttar Pradesh UP Government
Uttar Pradesh Govt Transfers 27 PCS Officers; Arun Kumar Singh Appointed Addl Commissioner, Moradabad - Check List Here
Maharashtra govt-logo
Maharashtra Govt Announces Major IAS Reshuffle; 7 Senior Officers Shifted, Sanjay Khandare Appointed Principal Secretary (Tourism)
UP Government Uttar Pradesh Yogi
UP Govt Transfers 46 IAS Officers Ahead of SIR; 10 DMs Replaced, Vijay Kiran Anand Gets Key Role, Amandeep Duli Moved to MNREGA
Indigenization_airworthiness_Certification
MIDHANI Achieves Milestone in Indigenous Development of Superalloys and Titanium Alloys for HAL Aero Engines
Droupadi Murmu ISA Assembly
President Droupadi Murmu Inaugurates 8th International Solar Alliance Assembly, Emphasizes Inclusive Solar Development
ONGC_Subsidiary_Petronet_MHB_
Petronet MHB Ltd. Pays Rs 16.04 Crore Interim Dividend to ONGC, Cumulative Payout Crosses Rs 750 Crore
ADVERTISEMENT
ADVERTISEMENT
Videos
IAS Gokul S
Meet IAS Gokul S — The Officer Who Turned Disability into Determination | Video Interview 
WhatsApp Image 2025-10-23 at 10.40
Everybody Needs To Know What Is Transpiring Behind Closed Doors Of Courts
WhatsApp Image 2025-10-19 at 12.23
UPSC Journey Should Be Enjoyable, Not Cumbersome
ADVERTISEMENT
UPSC Stories
IAS Gokul S
Meet IAS Gokul S — The Officer Who Turned Disability into Determination | Video Interview 
Visually impaired IAS officer Gokul S turned his challenges into change, empowering hundreds through...
Parmeshwar Chaudhary RAS
From Taunts to Triumph: How Farmer’s Son Parmeshwar Chaudhary Rose from Lab Assistant to SDM, Securing Rank 3 in RAS 2023
Parmeshwar, once taunted over his SI selection, has scripted a stunning success—securing Rank 3 in RAS...
IAS Rupal Rana UPSC
How Rupal Rana Cracked UPSC CSE 2023 with AIR 26 After Four Attempts
UPSC Topper Rupal Rana secured AIR 26 in 2023 after four attempts. Learn her preparation strategy, booklist,...
Social Media
Tenzin Yangki IPS Arunachal
Historic First: Who Is Tenzin Yangki, Arunachal Pradesh’s First Woman to Join IPS? Anand Mahindra Hails Her
She secured an impressive 545th rank in the prestigious UPSC Civil Services Examination - 2022.
IFS Parveen Kaswan
Heartbreak by the River: 15-Day-Old Elephant Calf Rejected by Mother, Rescued by IFS Parveen Kaswan and His Team
Jaldapra, West Bengal: In a moving incident that tugs at the heart, a 15-day-old elephant calf was rescued...
Ashwini Bhide IAS and Anand Mahindra
Who Is IAS Ashwini Bhide, Hailed as a Role Model for Mumbai Metro Transformation by Anand Mahindra?
From heritage to high-tech: Bhide’s leadership in Metro Line 3 earns public praise and admiration
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Mohan Yadav
Thousands of Tribal Homes to Shine Brighter: MP Cabinet Clears Rs 78.94 Crore PM-JANMAN Electrification Plan
Mazagon_Dock_Shipbuilders_and_SDHI_Sign_
Mazagon Dock and Swan Defence Strategic Partnership to Build Advanced Landing Platform Docks for Indian Navy
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
IAS Gokul S
WhatsApp Image 2025-10-23 at 10.40
WhatsApp Image 2025-10-19 at 12.23
ADVERTISEMENT
ADVERTISEMENT