HUDCO Plans ₹3,000 Crore Taxable NCD Issue for FY26 Funding and Refinancing

Housing and Urban Development Corporation Ltd (HUDCO) will issue taxable non-convertible debentures (NCDs) worth ₹3,000 crore in June 2025, as per the recent filing. The issuance is part of the company’s approved plan to raise up to ₹65,000 crore through bonds and debentures during the financial year 2025-26. 

HUDCO’s NCD Issue Structure and Details

The ₹3,000 crore NCD issue comprises a base size of ₹500 crore and a green shoe option of up to ₹2,500 crore. These are unsecured, redeemable, non-convertible, non-cumulative debentures with a face value of ₹1,00,000 each. The debentures will be issued on a private placement basis through the NSE Electronic Bidding Platform (EBP), with bidding scheduled for June 4, 2025, and settlement on June 6, 2025.

The tenure of the NCDs is 3 years, with maturity and redemption scheduled on June 6, 2028. Interest will be paid annually on June 6 each year, starting from 2026.

Purpose of the Issue

HUDCO will use 100% of the proceeds to meet operational and business requirements. This includes lending activities and repayment or refinancing of existing short-term and long-term debt. The funds are not tied to any specific project.

Read more: Best Real Estate Stocks in India in June 2025!

Investors and Terms

The NCDs will be offered to institutional investors, including mutual funds, banks, insurance firms, pension funds, and other eligible entities. The minimum application size is ₹1 crore. The interest will be paid at a fixed coupon rate, with a default interest rate of 2% above the coupon in case of payment delays.

Share price performance

As of 10:49 AM on June 03, 2025, HUDCO share price was trading at ₹250.53, a 1.08% increase, with a 6.05% increase over the past 6 months and a 12.99% drop over the past year.

Conclusion

The issue will provide HUDCO with long-term resources to support its regular business operations and manage existing debt obligations during the financial year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.