HUDCO Seeks to Raise ₹3,000 Crore Through Non-Convertible Debentures

Housing and Urban Development Corporation Ltd. (HUDCO) has announced plans to raise up to ₹3,000 crore through the issuance of unsecured, taxable, redeemable non-convertible debentures (NCDs). As per the reports, the fundraising will be done through private placement under Series-D 2025.

Breakdown of the Issue

The issue consists of a base size of ₹500 crore, with a green shoe option of ₹2,500 crore, taking the total to ₹3,000 crore. Each debenture has a face value of ₹1 lakh and will mature in 3 years. The NCDs are proposed to be listed on the BSE.

The coupon rate has been fixed at 6.64% per annum. Interest will be paid in 3 tranches, on June 17, 2026, July 17, 2027, and July 17, 2028. The bonds will be redeemed at par value at the end of the 3-year period.

No Collateral Involved

These NCDs are unsecured, meaning they are not backed by any company assets. HUDCO also noted that it has not reported any delays or defaults in servicing previous debt instruments, and no negative remarks have been made by stakeholders.

Purpose and Timing

The Bond Allotment Committee met on July 17, 2025, from 12:00 PM to 12:15 PM to approve the issuance. The funds are intended for ongoing housing and urban infrastructure financing activities.

HUDCO Share Price Performance

As of 10:43 AM on July 18, 2025, HUDCO share price was trading at ₹226.53, down 1.18% for the day, with a year-to-date decline of 4.74% and a 29.75% drop over the past year.

Read More: Tata Communications Receives Board Approval for ₹1,000 Crore NCD Issuance!

Conclusion

HUDCO is proceeding with this ₹3,000 crore NCD issue to support its financing operations. The bonds come with a fixed coupon and set maturity, with allotment and listing expected shortly.

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