New Delhi: Shares of Housing & Urban Development Corporation (HUDCO) dropped by more than 4% in intraday trading on Friday, April 4, following the board’s approval of a substantial ₹65,000 crore fundraise and a higher borrowing limit.
Investor concerns over the growing debt levels of the company led to the decline in share price, despite the potential for growth that these financial measures could enable. The stock fell as much as 4.2%, hitting a day’s low of ₹200.80. From its peak of ₹353.95 in July 2024, the stock has lost over 43% of its value. It recently touched a 52-week low of ₹158.90 in March 2025.
Key Approvals and Financial Measures
In a regulatory filing, HUDCO stated that its board, during a meeting on April 4, 2025, approved an annual fundraising plan of up to ₹65,000 crore for the 2025-26 financial year, with the actual funds raised depending on the company’s requirements throughout the year.
Additionally, the board approved an increase in the overall borrowing limit from ₹1,50,000 crore to ₹2,50,000 crore, subject to shareholder approval under Section 180(1)(c) of the Companies Act, 2013.
Stock Performance and Market Impact
Despite the positive outlook for expansion, the increase in borrowing capacity raised concerns about the company’s increasing debt levels. HUDCO’s stock had a modest 4% increase over the past year, but it has seen significant volatility recently, including a 21% jump in March 2025 after three consecutive months of losses. The stock shed over 28% in February, 2% in January, and 1.6% in December.
While the fundraising measures and increased borrowing limit aim to support HUDCO’s financial needs for growth, they have sparked investor caution, reflected in the drop in share price.
