HUDCO to Raise ₹2,190 Crore via Bonds Ahead of Q4 FY25 Results, Dividend Decision

Public sector company Housing & Urban Development Corporation (HUDCO) has received board approval to raise ₹2,190 crore by issuing non-convertible debentures (NCDs). The fundraising will be done through a private placement, as per the company’s stock exchange filing on May 6.

Details of the NCD Issue

The NCDs are unsecured, taxable, non-convertible, non-cumulative bonds with a face value of ₹1,00,000 each (Series-B 2025). The total issue size includes a base amount of ₹500 crore and a green shoe option of ₹1,680 crore.

These bonds will offer an interest rate of 6.90% annually and will be repaid at face value at the end of 5 years. Interest payments are scheduled annually on the following dates:

• May 08, 2026

• May 08, 2027

• May 06, 2028

• May 06, 2029

• May 06, 2030

The bonds are planned to be listed on the Bombay Stock Exchange (BSE).

Read More, Coforge Q4 FY25 Results: Net Profit Grows 17% YoY, Declares ₹19 Dividend.    

Previous Fundraising in April

On April 23, HUDCO had also approved another NCD issue of ₹2,430 crore, for a tenure of seven years with the same interest rate of 6.90%.

Q4 FY25 Results and Dividend Announcement on May 7

HUDCO’s board will meet again on May 7 to approve the audited financial results for the March 2025 quarter and full FY25. The board will also consider recommending a final dividend, which will be subject to shareholder approval at the Annual General Meeting (AGM).

HUDCO Share Price Movement

HUDCO shares were under pressure on May 6, falling nearly 4% in intraday trading. The stock opened slightly higher at ₹229.45 but dropped to a low of ₹220.10, marking a 3.8% fall.

Despite today’s dip, the stock has gained 8% in the past month. However, it is down 7.15% so far in 2025. Over the past year, it’s up 3%, and over the last two years, HUDCO has been a multibagger, delivering a 300% return.

Conclusion

HUDCO’s aggressive fundraising through back-to-back NCD issues reflects its strong capital needs for future growth. Investors await the Q4 results and dividend update, which could impact the stock’s near-term movement. Despite recent dips, the long-term returns remain attractive.

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