Government to pare up to 7% stake in HUDCO via OFS

18 Oct 2023 , 09:50 AM

The Union government has proposed selling up to 7% of its stake in Housing and Urban Development Corporation (HUDCO) through an offer for sale (OFS). The offer’s floor price has been fixed at Rs 79 per share.

The offer price is 12% less than the current market price.

Under the OFS, the government will sell 7 crore equity shares, representing about 3.5% of equity, with an additional 3.5% oversubscription option.

The offer will begin on October 18, which is the ‘T’ day, when only non-retail investors will be permitted to bid on the shares. On T+1 day, October 19, retail investors will be able to bid for shares, and non-retail investors who want to carry over their bids will also be able to participate.

Non-retail investors who filed bids on T-day and elected to carry on their unallotted bids to T+l day will be permitted to carry forward and amend their offers on T+1 day, according to OFS standards.

The offer will continue to be available to retail investors during trading hours on a separate window of the stock exchanges on T+l day, i.e., October 19.

On T+1 day, only retail investors will be permitted to put bids. Non-retail investors who opted to carry on their unallotted bids to T+1 day would also be able to alter their offers on T+1 day.

Approximately 10% of the offer is set aside for retail investors, subject to the receipt of legitimate bids.

Except for ordinary investors, who will have the ability to bid at the cut-off price, allocations will be made at or above the floor price on a price priority basis at multiple clearing prices.

 

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