Government To Sell 3.5% Stake Of HUDCO Via OFS

The government has approved the trade of a 3.5% stake, or 7 crore equity shares, in Housing and Urban Development Corp. through an offer for sale.

The government will sell the equity shares of HUDCO at a face value of Rs 10 each on two transaction days. The bid for non-retail investors and retail investors will take place during trading hours on a separate window of the stock exchanges on Oct. 18 and Oct. 19, respectively, according to an exchange filing on Tuesday.

If investors—other than retail investors—plan to carry forward their unallocated bid, they are allowed to revise their bid on T-1 day, according to the SEBI OFS circular.

In case of an oversubscription, the government will offer an additional 3.5% stake in HUDCO, it said.

The bid will take place on the floor price of the shares, which is Rs 79 apiece, at a discount of 12.17% on the previous close mentioned in the filings.

Shares of HUDCO closed 0.36% lower at Rs 89.92 apiece, as compared with a 0.39% rise in the benchmark Sensex on Tuesday.