HUDCO Shares Gain Nearly 4% on INR 25,000 Cr MoU with Bihar Govt
HUDCO shares jump 4% after signing INR 25,000 crore MoU with Bihar govt to fund industrial infrastructure and land buys.
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Housing and Urban Development Corporation (HUDCO) shares rose as much as 3.5 per cent to an intraday high of INR 184.69 on Thursday, after the company signed a Memorandum of Understanding worth INR 25,000 crore with the Government of Bihar.
Under the MoU, HUDCO will provide term loans of up to INR 25,000 crore for the development of industrial infrastructure in Bihar, including land acquisition for industrial park projects across the state. The loan will be availed in tranches by a statutory authority designated by the state government, over a period of up to five years.
The financing comes with a moratorium period and a flexible repayment schedule of up to 25 years, with an option for prepayment. Repayment will be secured by escrowing project revenue or ring-fencing other identified receivables, including state budget allocations. The MoU is valid for three years, subject to annual review, with separate operational agreements to be executed for specific project scopes.
HUDCO reported a 35.05 per cent rise in consolidated net profit to INR 851 crore for the June quarter of FY27, up from INR 630.23 crore a year earlier. Revenue from operations rose 26.55 per cent to INR 3,717.17 crore, while net interest income rose 21.1 per cent to INR 1,149 crore.
Shares were trading at INR 182.85, up 2.52 per cent. The stock slipped 22 per cent since the start of the year and 11 per cent over the past month. HUDCO’s total market capitalization stood at INR 35,709.89 crore as of September 2.
Housing and Urban Development Corporation (HUDCO) shares rose as much as 3.5 per cent to an intraday high of INR 184.69 on Thursday, after the company signed a Memorandum of Understanding worth INR 25,000 crore with the Government of Bihar.
Under the MoU, HUDCO will provide term loans of up to INR 25,000 crore for the development of industrial infrastructure in Bihar, including land acquisition for industrial park projects across the state. The loan will be availed in tranches by a statutory authority designated by the state government, over a period of up to five years.
The financing comes with a moratorium period and a flexible repayment schedule of up to 25 years, with an option for prepayment. Repayment will be secured by escrowing project revenue or ring-fencing other identified receivables, including state budget allocations. The MoU is valid for three years, subject to annual review, with separate operational agreements to be executed for specific project scopes.
HUDCO reported a 35.05 per cent rise in consolidated net profit to INR 851 crore for the June quarter of FY27, up from INR 630.23 crore a year earlier. Revenue from operations rose 26.55 per cent to INR 3,717.17 crore, while net interest income rose 21.1 per cent to INR 1,149 crore.
Shares were trading at INR 182.85, up 2.52 per cent. The stock slipped 22 per cent since the start of the year and 11 per cent over the past month. HUDCO’s total market capitalization stood at INR 35,709.89 crore as of September 2.
