The government's up to 8 percent stake sale in HUDCO at a floor price of Rs 45 apiece would open for institutional investors on Tuesday. The sale of over 16.01 crore shares, or a total of 8 percent stake, would fetch around Rs 720 crore to the exchequer.
The government is selling over 5 percent stake or over 11.01 crore shares, with an option to retain over-subscription of 2.5 percent or over 5 crore shares, through an offer-for-sale (OFS).
"Offer for Sale of GoI equity in HUDCO opens tomorrow for Non-Retail investors. Day 2 for Retail investors. Government would divest 5.5 percent shares with an additional 2.5 per cent as Green Shoe Option," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted.
Shares of HUDCO closed at Rs 47.20 apiece, down 6.81 percent on the BSE. The floor price of Rs 45 a share for the OFS is at a discount of 4.66 per cent over Monday's closing price.
The government has already raised over Rs 7,646 crore through minority stake sale. Of this, Rs 3,651 crore is from NMDC OFS and Rs 3,994 crore from the sale of SUUTI stake in Axis Bank.