HUDCO IPO opens on May 08

Monday, May 08, 2017 with a Price Band of Rs. 56 – Rs. 60 per equity share each of face value of Rs.10 each of the Company (the “Equity Shares”)

• Price Band: Rs. 56 to Rs. 60 per Equity Share of face value of Rs. 10 each.
• The Floor Price is 5.60 times of the face value and the Cap Price is 6.00 times of the face value.
• Bids can be made for a minimum of 200 Equity Shares and in multiples of 200Equity Shares thereafter.
• Offer for Sale of 204,058,747 Equity Shares by the Selling Shareholder.
• Bid/Offer Opening Date –  Monday, May 08, 2017 and Bid/Offer Closing Date – Thursday, May 11, 2017. Bids will not be accepted on May 10, 2017, being a public holiday.

 APPLICATIONS SUPPORTED BY BLOCKED AMOUNT (ASBA): Investors have to apply through the ASBA process. ASBA has to be availed by all the investors except anchor investors. For details on the ASBA process, please refer to the details given in the ASBA Form and abridged prospectus and also please refer to “Offer Procedure” beginning on page 553 of the RHP. ASBA Forms can also be downloaded from the websites of BSE and NSE. ASBA Forms can be obtained from the list of banks that is available on the website of SEBI at www.sebi.gov.in. ASBA Form can be obtained from Syndicate Member, SCSBs, Registered Brokers, RTAs and CDPs, the list of which is available on the website of SEBI at http://www.sebi.gov.in/sebiweb/home/5/33/0/0/Recognised-Intermediaries.

 Risks to Investors:

i. The four Book Running Lead Managers associated with the Offer have handled 29 public offers in the past 3 years, out of which 7 offers closed below the offer price on listing date.

ii. There are no listed peers of the Company.

iii. The average cost of acquisition per Equity Share by the Promoter is `10 and the Offer Price at upper end of the Price Band is significantly higher at ` 60.

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iv. The weighted average return on Net Worth for Fiscals 2016, 2015 and 2014 on consolidated basis is 9.9% and on a standalone basis is 9.9%.

New Delhi, May 5, 2017: Housing and Urban Development Corporation Limited (our “Company”), a Miniratna (Category-I Public Sector Enterprise) company of the Government of India, is proposing to undertake an initial public offering wherein the President of India, acting through the Ministry of Housing and Urban Poverty Alleviation, Government of India (the “Selling Shareholder”) is offering 204,058,747 Equity Shares for sale for cash at a price of Rs. [●]*  per Equity Share (the “Offer Price”), aggregating to Rs. [●] million (the “Offer”). The Offer is scheduled to open on Monday, May 08, 2017 and close on Thursday,May 11, 2017, with a Price Band of Rs. 56 – Rs. 60 per Equity Share. Bids will not be accepted on May 10, 2017, being a public holiday.

*A discount of Rs. 2 on the Offer Price will be offered to Retail Individual Bidders Bidding in the Retail Portion (“Retail Discount”) and to Eligible Employees Bidding in the Employee Reservation Portion (“Employee Discount”), respectively.

The Offer comprises a net offer to the public of 200,190,000 Equity Shares (the “Net Offer”) and an Employee Reservation Portion of up to 3,868,747 Equity Shares. The Offer and the Net Offer shall constitute 10.19% and 10%, respectively, of the post-Offer paid-up Equity Share capital of the Company.

The Company will not receive any proceeds from the Offer.

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The Offer is being made in terms of Rule 19(2)(b)(iii) of the Securities Contracts (Regulation) Rules, 1957, as amended, wherein at least 10% of the post-Offer paid-up Equity Share capital of the Company will be offered to the public. The Offer is being made through the Book Building Process in accordance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (“SEBI ICDR Regulations”), wherein 50% of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIB Portion”). Such number of the 204,058,747 Equity Shares offered in the Offer (the “Offered Shares”) representing 5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received from them at or above the Offer Price. Further, not less than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price.

All Bidders shall participate in the Offer mandatorily through the Applications Supported by Blocked Amount (“ASBA”) process by providing the details of their respective ASBA Accounts in which the corresponding bid amount will be blocked by the SCSBs.

IDBI Capital Markets & Securities Limited, ICICI Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited and SBI Capital Markets Limited are the Book Running Lead Managersto the Offer. The Registrar to the Offer is Alankit Assignments Limited.

The Offered Shares of the Company are proposed to be listed on the BSE Limited and National Stock Exchange of India Limited (together, the “Stock Exchanges”).

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