In a strategic move, the Indian government on Tuesday (October 17) through the Department of Investment and Public Asset Management (DIPAM), is set to divest up to 7% equity in Housing and Urban Development Corporation Ltd (HUDCO) via an offer for sale (OFS).

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This offering includes a base size of 3.5% and an additional 3.5% greenshoe option, providing flexibility to meet investor demand, Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management, said in a tweet.

Offer for Sale in HUDCO opens tomorrow for non-retail investors. Retail investors can bid on Thursday. Government will divest 7% equity including a Green Shoe option of 3.5%. pic.twitter.com/1UK0N2zUaU

— Secretary, DIPAM (@SecyDIPAM) October 17, 2023

Non-retail investors can participate in the OFS starting on October 18, while retail investors will have their bidding opportunity on October 19.

The offer price for each share stands at ₹79, and the government aims to raise approximately ₹1,110 crore through this divestment.

As per the budget documents published by the Ministry of Finance, the government has outlined its divestment target for the fiscal year 2023–24 at ₹51,000 crore.

In the previous fiscal year (FY23), the government initially set a target of ₹65,000 crore for divestment. However, the revised estimate for disinvestments in FY23 was ultimately realised at ₹50,000 crore.

Shares of Housing Urban Development Corporation Ltd ended at ₹89.92, up by ₹0.32, or 0.36%, on the BSE.

(Edited by : Shoma Bhattacharjee)