Shares of Housing & Urban Development Corporation Ltd (HUDCO) fell sharply in Wednesday's trading session as the Centre's stake sale begun. The stock tanked 9.51 per cent to hit a day low of Rs 81.22. The government is selling up to a 7 per cent stake in the state-run housing finance company through an offer for sale (OFS), according to a filing with the stock exchange.
The OFS includes selling 3.5 per cent of the company, with an option to sell an additional 3.5 per cent if the offer is oversubscribed. The floor price for the sale has been set at Rs 79 a share.
The Centre owns 81.81 per cent in the housing finance firm and the sale of a 7 per cent stake may help it to raise about Rs 1,100 crore.
"7,00,66,500 shares and additional option to sell up to 7,00,66,500 shares (oversubscription option). Total shares (base size + green shoe) 14,01,33,000. The seller shall intimate the stock exchanges of its intention to exercise the oversubscription after trading hours (i.e. on or before 5 pm) on October 18, 2023. The stake sale will help the government to achieve the minimum public shareholding norm set out by the capital market regulator SEBI, the exchange filing stated.
Minimum public shareholding norms require listed companies to maintain a public float of at least 25 per cent.
On technical setup, the counter was trading lower than the 5-day, 10-, 20- and 30-day simple moving averages (SMAs) but higher than the 50-day, 100-, 150- and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 44.99. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 10.37 against a price-to-book (P/B) value of 1.17.
The scrip has a one-year beta of 1.33, indicating low volatility.
The stock has gained around 79 per cent in the last six months and 52 per cent on a year-to-date (YTD) basis.
Meanwhile, Indian equity benchmarks were trading lower today, dragged by banks, financials, consumer and technology stocks.
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