HUDCO to go public shortly

Central PSU has crossed its targets in disbursal of advances, has a net NPA of 2.2 per cent

HYDERABAD: The Housing and Urban Development Corporation (HUDCO) has intensified efforts to come up with its IPO soon.

The Central public sector undertaking has already filed the draft red herring prospectus (DRHP) with the SEBI. HUDCO, owned 100 per cent by the Central Government, has initiated the process for the IPO following the Centre’s decision to divest 10 per cent of its stake, according to HUDCO Chairman and Managing Director M. Ravi Kanth.

In a chat with

The Hindu , the HUDCO Chairman who was here recently on Friday said the CPSU has three stakeholders — urban development 10 per cent, housing and urban poverty alleviation 70 per cent and rural development constituting the balance 20 per cent.

The corporation was comfortable with the gross NPA ratio pegged at 6.2 per cent and the net NPA at 2.2 per cent.

Crossed target

HUDCO targeted disbursal of ₹16,500 crore last year, but had sanctioned assistance to the tune of ₹30,000 crore of which over ₹8,000 crore had been released. The corporation had disbursed ₹4,000 crore during the current year so far.

“We still have three months. Disbursements generally pick up in the last month and we are hopeful of doing better than last year,” he said adding the corporation could register a year-on-year growth ranging between seven and 10 per cent.

“We borrow from the public and we have commercial papers. We also have tax free and taxable bonds,” Dr. Ravi Kanth said when asked about the fund raising activities of the corporation. Though the Board had given approval for borrowing up to ₹40,000 crore, the corporation borrows on the need basis. “We don’t borrow and park funds with us,” he said.