Latest news with #Hudco
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Business Standard
4 days ago
- Business
- Business Standard
Hudco board approves ₹750 crore fundraise via non-convertible debentures
The base issue size is ₹500 crore, with an additional green-shoe option of ₹250 crore The bonds are proposed to be listed on the BSE and will be redeemable at face value after three years. Interest will be paid annually Aman Sahu New Delhi The board of Housing & Urban Development Corporation Ltd (Hudco) on Friday approved raising ₹750 crore through non-convertible debentures (NCDs) at a coupon rate of 6.52 per cent. The unsecured, taxable, redeemable, non-convertible, non-cumulative debentures will be issued on a private placement basis to a select group of investors. Each debenture will have a face value of ₹1,00,000, the company said in a regulatory filing. The base issue size is ₹500 crore, with a green-shoe option of an additional ₹250 crore. The bonds are proposed to be listed on the BSE and will be redeemable at face value after three years. Interest will be paid annually. Debt market momentum According to a Business Standard report, Hudco is among several Indian companies that have tapped into the domestic debt capital market this week, collectively raising over ₹12,000 crore. The moves come amid expectations of a 25-basis-point (bps) repo rate cut by the Reserve Bank of India (RBI). However, the RBI surprised markets on Friday with a 50-bps cut, bringing the repo rate down to 5.5 per cent from 6 per cent—a development that could further accelerate debt fundraising. Hudco's financial performance Hudco, a public sector enterprise providing financing for housing and infrastructure projects, was granted Navratna status in April 2024. The company reported a 3.93 per cent year-on-year rise in net profit to ₹727.74 crore for Q4 FY25. Revenue for the quarter surged 37 per cent y-o-y to ₹2,760 crore. For the full fiscal year, net profit rose to ₹2,709.14 crore, up from ₹2,116.74 crore in FY24. Hudco shares closed 1.78 per cent lower at ₹246.20 apiece on the BSE on Friday.
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Business Standard
6 days ago
- Business
- Business Standard
Over ₹12,000 crore bond sweep by firms ahead of RBI policy verdict
Several major Indian companies, including metal-to-mining conglomerate Vedanta, Jubilant Beverages, Housing and Urban Development Corporation (Hudco), and Bajaj Housing Finance, together raised more than ₹12,000 crore from the domestic debt capital market on Wednesday, ahead of the Reserve Bank of India's (RBI's) rate-setting panel's policy decision, which is expected to cut the repo rate by another 25 basis points (bps). Vedanta raised ₹5,000 crore in three tranches. It raised ₹2,400 crore through bonds maturing in two years and five months at a coupon rate of 9.31 per cent. It also raised ₹1,750 crore through bonds maturing in three years at a coupon of 9.45 per cent. Further, it raised ₹850 crore through bonds maturing in two years at a coupon of 8.95 per cent. Proceeds from the issuance will be used by the company for general corporate purposes, including repayment or prepayment of existing debt, and for capital expenditure requirements. Major mutual fund (MF) houses and insurance companies subscribed to the anchor portion — 30 per cent — of the issue. Meanwhile, Jubilant Bhartia Group, through its two companies — Jubilant Bevco and Jubilant Beverages — raised around ₹5,650 crore. While Jubilant Bevco raised ₹3,000 crore through bonds maturing in three years at a yield of 8.78 per cent, Jubilant Beverages raised ₹2,650 crore through three-year bonds at a yield of 8.65 per cent. The coupon for Jubilant Bevco bonds are 9.15 per cent and that for Jubilant Beverage bonds are 9 per anchor portion of the two tranches — ₹1,695 crore — was subscribed by major MF houses. The group was looking to raise ₹5,650 crore through bonds to part-fund its ₹12,650 crore acquisition of a 40 per cent stake in Hindustan Coca-Cola Holdings, the parent company of Coca-Cola's largest bottling partner. 'Most of the issuances were in the three-year segment, which witnessed strong demand from MFs and insurance companies. The surge in banking system liquidity since April has lifted inflows into MFs, enabling them to act as anchor investors in the Jubilant and Vedanta issues. These AA-rated bonds offered attractive yields in the range of 8.65 per cent to 9.45 per cent, which appealed to MFs looking to deliver better returns to their investors,' said Venkatakrishnan Srinivasan, founder and managing partner of Rockfort Fincap LLP. Last week, another major corporate, Adani Ports and Special Economic Zone, tapped into the domestic bond market to raise ₹5,000 crore through 15-year bonds at a cut-off of 7.75 per cent. The issue was entirely subscribed by state-owned Life Insurance Corporation of India. State-owned Hudco raised ₹750 crore through three-year bonds at a coupon of 6.52 per cent. Hudco was looking to raise ₹3,000 crore — ₹500 crore base issue and ₹2,500 crore greenshoe — but retained only ₹750 crore, as the company held back from accepting higher bids, possibly expecting more aggressive pricing in line with the anticipated easing cycle. The RBI rate-setting body — the monetary policy committee (MPC) — is expected to cut rates by another 25 bps on Friday, according to a Business Standard poll of 10 economists. State Bank of India, however, expects a 50 bps cut. The RBI's MPC has already cut the repo rate by 50 bps in the February and April meetings. The repo rate now stands at 6 per cent. 'Hudco appears to have been conservative on pricing and accepted only ₹750 crore at a cut-off yield of 6.52 per cent, well below its total issue size of ₹3,000 crore. While MFs showed greater interest in higher-yielding AA credits like Vedanta and Jubilant, Hudco's issue stood out for its quality and received strong demand, even though the final allocation was limited due to the issuer's yield expectations,' Srinivasan said. Bajaj Housing Finance, the housing finance arm of Bajaj Finance, also raised ₹500 crore on Wednesday through bonds maturing in three years at a coupon of 7.01 per cent. Meanwhile, Rajgarh Transmission, a special purpose vehicle of GR Infraprojects, raised ₹308 crore through three-year bonds at a cut-off of 7.03 per cent.
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Business Standard
29-05-2025
- Business
- Business Standard
SBI Life, Hudco, Canara Bank among top stocks to buy as Nifty consolidates
Stock Market View Markets traded subdued within a narrow range with a negative bias, continuing the ongoing consolidation phase. After an initial dip, the Nifty moved in a tight band throughout the session and eventually settled at the 24,752.45 level on Wednesday. Interestingly, unlike the frontline indices, the broader markets continued to show strength, with the smallcap index closing in the green while the midcap index ended flat. Despite the stable global cues and favorable domestic factors, the market is being weighed down by inconsistent FII inflows, which is reflected in the recent increase in volatility. Stocks to Buy Today, May 29, 2025: Canara Bank | LTP: ₹110.94 | Buy | Share price target: ₹118 | Stop-loss: ₹106 The PSU bank segment is showing renewed buying interest and, among them, Canara Bank share price is leading from the front. The stock recently confirmed a breakout from an 'inverted head and shoulder' pattern, showing clear sign of trend reversal. It is gradually inching higher, witnessing a follow-through breakout from a tight range, and looks poised for further upside. Considering the price action and buoyancy in the counter, traders can go long in Canara Bank shares within the mentioned range. Housing & Urban Development Corporation Limited | LTP: ₹237.24 | Buy | Share price target: ₹256| Stop-loss: ₹228 Hudco stock recently broke out of its multi-month declining trendline, potentially ending the corrective phase. After a brief pullback, it created a fresh buying pivot at the confluence of key moving averages, while forming an 'inverted head and shoulder' pattern. Considering the price structure, Hudco share price looks set for a strong move on the upside. Traders can initiate longs in the mentioned range. SBI Life Insurance Company Limited | LTP: ₹1,807.40 | Buy | Share price target: ₹1,950 | Stop-loss: ₹1,740 SBI Life share price witnessed a sharp rally post its breakout from the consolidation phase. However, to digest the gains, the price traded in a contracting range, resulting into a pennant pattern formation. SBI Life stock has registered a fresh breakout from this trend continuation pattern, suggesting resumption of prevailing uptrend. Participants may consider initiating fresh long positions at current levels.
Time of India
08-05-2025
- Business
- Time of India
HUDCO plans first overseas debt issue in FY26 to reduce borrowing costs
The objective of overseas borrowings is to bring down the cost of funds. Kulshrestha said that the company is aiming to cut down the weighted average cost of borrowing to 6.5-6.5% by the end of this fiscal from 6.75% currently. Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: State-owned Housing and Urban Development Corp (Hudco) is eyeing its maiden overseas debt issue in FY26 through a Japanese yen-denominated Samurai bond sale to help diversify borrowing sources and reduce costs. "Because we are testing the waters, we are looking to raise anywhere between $100 million and $150 million through yen-denominated bonds to start with in this financial year," MD Sanjay Kulshrestha told the company is also looking to raise $500 (dollar equivalent yen) through external commercial borrowings in the September quarter. Both ECB and foreign-currency bonds are part of HUDCO's planned overseas borrowing of $2 billion in the current financial Singh Khatri, director, finance, said that following the announcement of the company's FY25 results on Wednesday, it will start the documentation work for the bond issue. "It may happen in the third quarter or end of the second quarter. We have a panel of bankers, including all reputed Japanese bankers like SMBC, MUFG, and Mizuho," Khatri objective of overseas borrowings is to bring down the cost of funds. Kulshrestha said that the company is aiming to cut down the weighted average cost of borrowing to 6.5-6.5% by the end of this fiscal from 6.75% currently."If there is arbitrage of 50 bps, then only it is wise to go for overseas borrowing," he said, adding that the Reserve Bank of India's 50 basis point reduction in policy rates and cheaper overseas borrowing will help the plans to borrow ₹65,000 crore through a mix of loans from domestic and overseas markets. This compares with ₹55,000 crore it borrowed last fiscal.
Economic Times
08-05-2025
- Business
- Economic Times
HUDCO plans first overseas debt issue in FY26 to reduce borrowing costs
Mumbai: State-owned Housing and Urban Development Corp (Hudco) is eyeing its maiden overseas debt issue in FY26 through a Japanese yen-denominated Samurai bond sale to help diversify borrowing sources and reduce costs. "Because we are testing the waters, we are looking to raise anywhere between $100 million and $150 million through yen-denominated bonds to start with in this financial year," MD Sanjay Kulshrestha told ET. ADVERTISEMENT Separately, the company is also looking to raise $500 (dollar equivalent yen) through external commercial borrowings in the September quarter. Both ECB and foreign-currency bonds are part of HUDCO's planned overseas borrowing of $2 billion in the current financial year. Daljeet Singh Khatri, director, finance, said that following the announcement of the company's FY25 results on Wednesday, it will start the documentation work for the bond issue. "It may happen in the third quarter or end of the second quarter. We have a panel of bankers, including all reputed Japanese bankers like SMBC, MUFG, and Mizuho," Khatri said. The objective of overseas borrowings is to bring down the cost of funds. Kulshrestha said that the company is aiming to cut down the weighted average cost of borrowing to 6.5-6.5% by the end of this fiscal from 6.75% currently."If there is arbitrage of 50 bps, then only it is wise to go for overseas borrowing," he said, adding that the Reserve Bank of India's 50 basis point reduction in policy rates and cheaper overseas borrowing will help the plans to borrow ₹65,000 crore through a mix of loans from domestic and overseas markets. This compares with ₹55,000 crore it borrowed last fiscal. (You can now subscribe to our ETMarkets WhatsApp channel)
