New Delhi — The state-owned Housing and Urban Development Corporation Ltd (HUDCO) has announced the raising of up to ₹3,000 crore through the issuance of Unsecured, Taxable, Redeemable, Non-Convertible Debentures (NCDs) on a private placement basis. The move was approved during a meeting of HUDCO’s Bond Allotment Committee held earlier today.
Issue Structure and Key Details
According to an exchange filing, the NCDs — categorized as Series-D 2025 — will have a face value of ₹1,00,000 each. The offering includes:
- Base Issue Size: ₹500 crore
- Green Shoe Option: ₹2,500 crore
- Total Issue Size: ₹3,000 crore
The tenure of the bonds is three years, with full redemption at par at the end of the term. Interest will be paid annually, making the issuance appealing to institutional investors seeking predictable, periodic returns.
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Unsecured and Non-Cumulative Instruments
These NCDs are unsecured, meaning they are not backed by HUDCO’s physical assets. They are also non-cumulative, implying that if interest is not paid in any year, it will not accrue or roll over. Despite the unsecured nature, HUDCO holds high credit ratings from major rating agencies, enhancing investor confidence in the instrument.
Market Response
On the market front, HUDCO shares declined by 1.43%, closing at ₹229.24 apiece on the BSE shortly after the announcement. Market analysts attribute the drop to investor caution over the near-term implications of debt expansion on the company’s financials.
Strategic Capital Raising for FY 2025–26
This NCD issuance is part of HUDCO’s broader capital-raising strategy for FY 2025–26, under which the company has board approval to raise up to ₹65,000 crore. The proceeds will be used to support HUDCO’s core mission — financing affordable housing and urban infrastructure development across India.
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.
