HUDCO receives board's nod to raise ₹2,190 crore via NCDs; shares down over 3%

“…the ‘Bond Allotment Committee’ in their meeting held today, i.e., 6 May 2025, has approved the raising of debentures as unsecured, taxable, redeemable, non-convertible, non-cumulative NCDs of a face value of ₹1,00,000 each (Series-B 2025) aggregating up to ₹2,190.00 crore on a private placement basis,” the company said in a statement to the stock exchanges.

The NCD will have a base issue size of ₹500 crore, a green shoe option of ₹1,680 crore and a total issue size of ₹2,190 crore. The bond will also carry a coupon rate of 6.90%. It will be redeemable at par at the end of the fifth year, with interest payment on a yearly basis.

The bonds are proposed to be listed on the Bombay Stock Exchange (BSE), with the schedule of payment of interest and principal of May 6, 2026, May 6, 2027, May 6, 2028, May 6, 2029, and May 6, 2030.

HUDCO will hold a board meeting on May 7, 2025, to consider and approve the yearly audited financial results of the company for the period ending March 2025 and the dividend for the period.

The NBFC-IFC firm posted a net profit of ₹735 crore for the December quarter of FY25, up 41.6% year-on-year (YoY).

The non-banking financial company-infrastructure finance company (NBFC-IFC) also reported a 37.14% rise at Rs 2,760.23 crore in revenue YoY from operations.

For the first nine months of FY25, Hudco’s net profit advanced 39.87% YoY to ₹1,981.40 crore. Revenue during the same period rose by 30.55% on the year, to ₹7,466.13 crore. The company attributed this performance to growth in its loan book and a reduction in non-performing assets (NPAs).

On Tuesday, shares of HUDCO were trading at ₹221.06 apiece on the National Stock Exchange, declining 3.38%.

Over the last five trading sessions, shares of the company have fallen 2%.

For a month’s period, the stock has gained over 13%.

Meanwhile, for six months’ time, since November 6, 2024, HUDCO shares have lost over 4%. Year-to-date, it has declined 7.3%.

Its market capitalisation stood at ₹44,254 crore.

Shares of the firm had touched its 52-week high of ₹353.7 apiece on July 12, 2024, while its one-year low was hit on March 3, 2025, at ₹158.85 per share.