Hudco makes strong debut on bourses; shares end 21% higher

State-run HUDCO made a remarkable stock market debut on Friday, closing the trading session with almost 21 per cent gain over the issue price of Rs 60.

After listing on BSE at Rs 73.45, up 22.41 per cent, the stock later touched a high of Rs 77.80, gaining 29.66 per cent in intra-day session. It closed at Rs 72.50, a 20.83 per cent rise over issue price.

On NSE, the stock surged 20.91 per cent to close at Rs 72.55. The company commands a market valuation of Rs 1,479.43 crore. In terms of volume, 303.12 lakh shares of the company were traded on BSE and over 21 crore shares changed hands at NSE during the day.

"We are pleased with the strong reception received from investors and the successful listing of HUDCO IPO. The extraordinary over-subscription is a testimony of faith reposed by investors in a company backed by quality leadership and management, strong business model and a great track record.

"HUDCO IPO witnessed a blockbuster response from participation from top quality global and domestic institutional investors and also received applications from over 2 million retail investors," said Ajay Saraf, Executive Director, ICICI Securities Ltd, a lead manager of the issue.

This was the first IPO of a Central Public Sector Enterprise since April 2012. The IPO of Housing and Urban Development Corporation (HUDCO) saw huge demand from investors and was oversubscribed 79.53 times. The qualified institutional buyer (QIB) portion was oversubscribed 55.45 times, non-institutional investors a staggering 330.36 times and retail investors 10.79 times.

The IPO of HUDCO received bids worth Rs 97,000 crore.