HUDCO Greenlights ₹30 Billion NCD Plan to Power Urban Infrastructure Financing

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Housing and Urban Development Corporation Ltd (HUDCO) has received board approval to raise up to ₹30 billion through the issuance of Non-Convertible Debentures (NCDs) on a private placement basis. The move is aimed at bolstering long-term funding for housing and urban development projects under government-backed schemes.

Key Highlights:

The NCDs will be unsecured, taxable, redeemable, non-convertible, and non-cumulative, with a face value of ₹1,00,000 each.
The funds will be deployed for lending activities, refinancing existing debt, and general corporate purposes.
HUDCO retains the right to re-purchase and re-issue the NCDs as per applicable regulatory norms.

Strategic Context:

HUDCO has consistently used debt instruments to support initiatives like Smart Cities, AMRUT, and affordable housing.
The company’s clean payment track record and strong government backing enhance investor confidence in its bond offerings.
Recent NCD issuances have carried coupon rates between 6.52% and 6.90%, aligning with prevailing interest rate trends.

Market Outlook:

HUDCO’s share price has delivered multibagger returns, rising over 900% in five years, reflecting strong investor sentiment.
The ₹30 billion fundraising aligns with HUDCO’s broader strategy to diversify funding sources and maintain liquidity for infrastructure-led growth.
Analysts expect the move to support HUDCO’s projected loan book CAGR of over 25%, targeting ₹3 lakh crore by 2030.

Sources: Business Standard, Moneycontrol, Livemint, NDTV Profit, HUDCO Corporate Filings (July 2025)