HUDCO shares rise 3% on signing MoU with India Infrastructure Finance Company

The company, in a filing to the stock exchanges, said that it has signed a Memorandum of Understanding (MoU) with IIFCL, wholly-owned by the Government of India.

The agreement was signed on June 6, 2024, in New Delhi, to reinforce cooperation and collaboration in order to leverage respective strengths for extending Infrastructure co financing, refinancing, project management consultancy services and capacity building activities, the company informed the bourses.

The Chief Managing Director (CMD) of HUDCO Sanjay Kulshrestha as well as the Managing Director of IIFCL, Padmanabhan Raja Jaishankar executed the said agreement on Thursday, in the presence of other important officials of both the Central Public Sector Enterprises (CPSEs).

So far this year, the stock has given stellar returns to its shareholders, rising sharply by 98% on a year-to-date (YTD) basis. Over the last one year, HUDCO’s shares have skyrocketed unbelievably by nearly 310%.

In a month’s time, the public sector enterprise stock has witnessed double-digit gains of 20%, while jumping almost 25% in a period of three months. In the past three years the stock has gained nearly 390%.

Earlier this month, HUDCO announced that its Director of Finance and Chief Financial Officer (CFO) D Guhan exited his role on attaining the age of superannuation.

For the financial year ended March 31, 2024, HUDCO reported a 24% higher net profit on a year-on-year (YoY) basis at ₹2,116.74 crore, while its total income rose 12% YoY at ₹7,948.1 crore in the year.

Shares of HUDCO closed 0.62% at ₹248.1 apiece on the NSE.