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  Business   Centre to sell 10 per cent Hudco pie

Centre to sell 10 per cent Hudco pie

AGE CORRESPONDENT
Published : Jun 16, 2016, 2:03 am IST
Updated : Jun 16, 2016, 2:03 am IST

Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved 10 per cent disinvestment of Housing and Urban Development Corpor-ation (Hudco).

Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved 10 per cent disinvestment of Housing and Urban Development Corpor-ation (Hudco).

The stake will be sold in the market through initial public offering (IPO) in the domestic market as per the market regulator Sebi’s rules and regulation.

The government has set a disinvestment target of Rs 56,500 crore for this fiscal. Of this, Rs 36,000 crore is to come from minority stake sale in PSUs and Rs 20,500 crore from strategic sale. The government has already kick-started the disinvestment programme for the current fiscal with 11.36 per cent stake sale in NHPC, whi-ch fetched Rs 2,700 crore.

The paid up equity capital of Hudco is Rs 2001 crore and government owns 100 per cent of the equity at present. Net worth of Hudco is around Rs 7,800 crore.

Hudco was incorporated on April 25, 1970 as a wholly owned government of India Enterprise under the administrative control of ministry of housing and urban poverty alleviation with the objective of providing long term finance for construction of houses for residential purposes.

Location: India, Delhi, New Delhi