HUDCO, a Navratna PSU under the Ministry of Housing and Urban Affairs, has approved raising up to ₹2,000 crore through a private placement of non-convertible debentures (NCDs). The company’s stock surged over 3% following the announcement, despite recent volatility in share prices. The bonds, with a 10-year tenure and a coupon rate of 7.19%, will be listed on the BSE.
Housing & Urban Development Corporation Ltd (HUDCO), a leading Navratna public sector undertaking (PSU) under the Ministry of Housing and Urban Affairs, India, has approved raising up to ₹2,000 crore through a private placement of unsecured, taxable, redeemable, non-convertible, and non-cumulative debentures (NCDs). The decision was made at a board meeting held on March 27, 2025. Following the announcement, HUDCO shares surged over 3% to reach ₹203.50 on the Bombay Stock Exchange (BSE).
According to the company’s regulatory filing, the bond issue consists of a base size of ₹500 crore with a green shoe option to raise an additional ₹1,500 crore, bringing the total to ₹2,000 crore. The bonds, having a tenure of 10 years, will be listed on the BSE and will offer a coupon rate of 7.19%. Interest payments will be made annually, and the bonds will be redeemed at par upon maturity.
Stock Performance and Market Trends
HUDCO shares have shown strong movement in the short term, gaining 16% over the past month. However, on a year-to-date (YTD) basis, the stock has declined by 15.5% and has dropped 16% over the past six months. Despite this, HUDCO has demonstrated robust long-term growth, delivering a 390% return over the past two years and a remarkable 925% surge over five years, making it a multibagger stock in the Indian financial market.
At 2:40 PM on March 27, 2025, HUDCO shares were trading 1.81% higher at ₹200.20 apiece on the BSE.
The company’s move to raise funds through the NCD issue aligns with its long-term strategy to finance housing and infrastructure development projects across India. Market analysts expect this fundraising to enhance HUDCO’s financial stability and further strengthen its position in the housing finance sector.
