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HUDCO IPO Details

Issue Open May 8, 2017
Issue Close May 11, 2017
IPO Price ₹60
Face Value ₹10
IPO Size ₹1,224.35 Cr
Listing At BSE, NSE
IPO Lot Size 200

Housing and Urban Development Corporation Limited

Our Company was incorporated 31 New Delhi as 'The Housing and Urban Development Finance Corporation Private Limited' on April 25, 1970, as a private limited company under the Companies Ad, 1956 and was granted a certificate of incarporation by the then Registrar of Companies, Delhi. Subsequently, the name of our Company was changed to its present name, 'Housing and Urban Development Corporation Limited' and a fresh certificate of incorporation dated July 9. 1974. was issued by the then Registrar of Companies. Delhi &. Haryana. Our Company was notified as a public financial instilution under Section 4A of the Companes Act, 1956 on December 9,1996, by the Department of Company Affaire, Ministry of Finance, Government of India. The National Housing Bank issued a certificate of registration to our Company on July 31,2001, permitting us to carry on the business of a housing finance instilution, For further details, of changes in the name and registered office of our Company, see 'History and Certain Corporate Matters' on page 143 of the Prospectus dated May 12,2017 ('Prospectus')

Registered and Corporate Office; HUDCO Bhawan, India Habitat Centre, Lodhi Road. New Delhi 110 003. India; Tel; +91 11 2464 9610-27; Fax: +91 11 2464 8427; Contact Person; Harish Kumar Sharma Company Secretary and Compliance Officer; Tel: +91 11 2464 6899; Fax: +91 11 2461 5534; E-mail; cswhudco@hudco.org; Website; www.hudco.org; Corporate Identity Number: U74899DL1970GOI005276

PROMOTER OF OUR COMPANY: THE PRESIDENT OF INDIA, ACTING THROUGH, THE MINISTRY OF HOUSING AND URBAN POVERTY ALLEVIATION, GOVERNMENT OF INDIA, THE MINISTRY OF RURAL DEVELOPMENT, GOVERNMENT OF INDIA AND THE MINISTRY OF URBAN DEVELOPMENT, GOVERNMENT OF INDIA.

BASIS OF ALLOTMENT

The Equity Shares are proposed to be listed on the BSE Limited ('BSE') and the National Stock Exchange of India Limited ('NSE') and the trading will commence on May 19,2017,

INITIAL PUBLIC OFFERING OF 204,058747 EQUITY SHARES OF FACE VALUE OF RS 10 EACH ('EQUITY SHARES') OF HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED (OUR 'COMPANY'' OR THE 'ISSUER') THROUGH AN OFFER FOR SALE BY THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF HOUSING AND URBAN POVERTY ALLEVIATION: GOVERNMENT OF INDIA (THE'SELLING SHAREHOLDER''). FOR CASH AT A PRICE OF RS 60* PER EQUITY SHARE (THE 'OFFER PRICE'), AGGREGATING TO RS 12097.77 MILLION (THE 'OFFER'), THE OFFER COMPRISES A NET OFFER OF 200,190,000 EQUITY SHARES AND AN EMPLOYEE RESERVATION PORTION OF 3,608,747 EQUITY SHARES. THE OFFER AND THE NET OFFER SHALL CONSTITUTE 10.19% AND 10%, RESPECTIVELY OF THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

*A discount of Rs 2,0 on the Offer Price has been offered to Retail Individual Bidders Bidding in the Retail Portion (''Retail Discount') and to Eligible Employees Bidding in the Employee Reservation Portion ('Employee Discount').

THE OFFER PRICE :RS 60 PER EQUITY SHARE OF FACE VALUE OF RS 10 EACH
THE OFFER PRICE IS 6 TIMES OF THE FACE VALUE

Risks to Investors:

i The four Book Running Lead Managers associated with the Offer have handled 29 public offers In the past 3 years, out of which 7 offers closed below the offer price on listing date.

ii. There are no listed peers of our Company,

iii The average cost of acquisition per Equity Share by our Promoter is Rs 10 and the Offer Price is significantly higher at Rs 60..

iv. The weighted average return on Net Worth for Fiscals 2016,2015 and 2014 on consolidated basis is 9.9% and on a standalone basis is 9.9%.

BID/OFFER PROGRAMME;
BID/OFFER OPENED ON MAY 8, 2017 | BID/OFFER CLOSED ON MAY 11, 2017*

'Bids were not accepted on May 10,2017 being a public holiday,

The Offer is made in terms of Rule 19(2)(b)(iii) of the Securities Contracts (Regulation) Rules. 1957, as amended ('SCRR'), wherein at least 10% of the post-Offer paid-up Equity Share capital of our Company has been offered to the public. The Offer is made through the Book Buliding Process in accordance with Regulation 26(1) of the Securities and Exchange Board of India  (Issue of Capital and Disclosure Requirements) Regulations, 2009. as amended ('SEBI ICDR Regulations') wherein 50% of the Net Offer has been made available for allocation on a proportionate basis to Qualified Institutional Buyers ('QIB Portion'). Such number of Offered Shares representing 5% of the QIB Portion have been made available for allocation on a proportionale basis to Mutual Funds only. The remainder of the QlB Portion has been made available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received from them at or above the Offer Price. Further, not, less than 15% of the Net Offer has been made available for allocation on a proportionate basis to Non-lnstitutional Bidders and not less than 35% of the Net Offer has. been made available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. Further, 3,868,747 Eguriy Shares have been made available for alocation on a proportionate basis to the Eligible Employees Bidding in the Employee Reservation Portion, subjects valid Bids being received from them at or above the Offer Price. All Bidders participated in the Offer mandatorily through the AEBA process by providing the details of their respective ASBA Accounts in which the corresponding Bid Amount was blocked by the SCSBs. For details, see'Offer Procedure' on page 553 of the Prospectus.

The Offer received 1951480 Applications for 16163167600 Equity Shares (after recategorization and before technical rejections) resulting in 79 31 times subscription. The details of the Applications received in the Offer from various categories are as under; (after recategorization and before technical rejections)

Sr.
No.
Category No. of
Applications
No. of
Equity Shares
Equity Shares
Reserved
No. of times
Subscribed
Amount
(in Rs)
A Retail Individual Investors 19,46,770 73,15,59,400 7,00,66,500 10.44 42,62,14,88,532
B Non Institutional Investors 3,943 9,92,56,78,800 3,00,28,500 330.54 5,95,53,89,12,400
C Qualified Institutional Buyers 222 5.52,35,72.800 10.00.95.000 55.18 3.31.41,43,68.000
D Employee Reservation Portion 545 23,56,600 38,68,747 0.61 13.73.82,400
Total 19,51.480 16,18,31,67,600 20,40,58,747 79.31 9,69,71,21,51,332

Final Demand

A summary of the final demand as per the BSE and the NSE as on the Bid/Offer Closing Date at different Bid prices is as under:

Sr. No, Bid Price No. of
Equity Shares
% of
Total
Cumulative
Total
Cumulative
% of Total
1 56 23,04,000 0.014% 23,04,000 0,01%
2 57 4.27.600 0.003% 27.31.600 0.02%
3 58 72,60,000 0.045% 99,91,600 0.06%
4 59 4,23,000 0.003% 1,04,14,600 0,06%
5 60 15,58,83,38,000 96.050% 15,59,87,52,600 96.11%
6 CUT-OFF 63,07,23,000 3.886% 16,22,94,75,600 100.00%
TOTAL 16,22,94.75,600 100.00%

The Basis of Allotment was- finalized in consultation with the Designated Stock Exchange, being BSE on May 17.2017.

A. Allotment to Retail Individual Investors (After Technical Rejections)

The Bas.s of Allotment to the Retail Individual Investors, who have Bid at Cut-off Price or at the Offer Price of Rs 60 per Equity Share was finalized in corsultation with BSE. The category has been subscribed to the extent of 10.44 times. The total number of Equity Shares Allotted in this category is 70637262 Equity Shares to 353186 successful applicants. The category-wise details of the Basis Of Allotment are as under.

Category No. of
Applications
Received
% of
Total
Total No. of
Equity Shares
applied
% of
Total
No. of Equity
Shares Allotted
per Applicant
Ratio Total  No. of
Equity Shares
Allotted
200 1541516 82.25 308303200 43.90 200 91:483 58099600
400 119083 6.35 47633200 6.78 200 13:69 4488200
600 45656 2.44 27393600 3.90 200 13:59 1720800
800 25858 1.38 20686400 2.95 200 13:69 974600
1000 38646 2.06 38646000 5.50 200 13:69 1456600
1200 8546 0.46 10255200 1.46 200 13:69 322200
1400 5213 0.28 7298200 1.04 200 13:69 196400
1600 12670 0.68 20272000 2.89 200 13.69 477600
1800 5658 0.30 10184400 1.45 200 13:69 213200
2000 13046 0.70 26092000 3.72 200 13:69 491800
2200 1794 0.10 3946800 0.56 200 13:69 67600
2400 2666 0.14 6398400 0.91 200 13:69 100400
2600 2082 0.11 5413200 0.77 200 13:69 78400
2800 1101 0.06 3082800 0.44 200 13:69 41400
3000 5060 0.27 15180000 2.17 200 13:69 190800
3200 17544 0.94 56140800 7.99 200 13:69 661200
3400 28031 1.50 95305400 13.57 200 13:69 1056400
1874170 100.00 702231600 100.00 70637200

Additional 1 share allotted to Sr. No. 2 to Sr. No. 17 in the ratio of 1.5365

B. Allotment to Non Institutional Investors (After Technical Rejections)

The Basis of Allotment to the Non-lnstitutional Investors, who have Bid at the Offer Price of  Rs 60 per Equity Share, was finalized in consultation with the BSE. This category has been subscribed to the extent of 330.54 times. The total number of Equity Shares Allotted in this category is 30273113 Equity Shares to 1965 successful applicants.

The categary-wisedetails of the Basis of Allotment are as under (Sample)

Category No. of
Applications
Received
% of
Total
Total No. of
Equity Shares
applied
% to
Total
No. of Equity
Shares Allotted
per Applicant
Ratio Total No. of
Equity Shares
Allotted
3400 34 0.91 115600 0.00 200 1:34 200
3600 284 7.64 1022400 0.01 200 1:19 3000
3800 35 0.94 133000 0.00 200 2:35 400
4000 129 3.47 516000 0.01 200 5:92 1400
4200 21 0.57 88200 0.00 200 1:21 200
4400 15 0.40 66000 0.00 200 1:15 200
4600 8 0.22 36800 0.00 200 1:8 200
4800 13 0.35 62400 0.00 200 1:13 200
5000 171 4.60 855000 0.01 200 7:92 2600
5200 19 0.51 98800 0.00 200 1:19 200

C. Allotment to QIBs (AfterTechnical Rejections)

The Basis of Allotment to QlBs who have Bid at the Offer Price of Rs 60 per Equity Share has been done on a proportionate basis in consultation with the BSE This category has been subscribed to the extent of 55.18 times of the QIB Portion. As per the SEBI ICDR Regulations, Mutual Funds were Allocated 5% of the Equity Shares of QIB Portion available i.e. 5045519 Equity Shares spilled and other QIBs, including Mutual Funds, were Allocated the remaining available 95864853 on proportionate basis. The total number of Equity Shares allotted in the QIB calegory is 100910372 Equity Shares, which were allotted to 222 successfull Applicants. The category-wise details of tha Basis of Allotment are as under:

CATEGORY FIS/BANKS FII/FPC MF-S ICS VCS AIF OTHERS TOTAL
QIBs 17622732 36538901 5045519 7588034 2970537 289523 30810126 100910372

D. Allotment to Eligible Employees (After Technical Rejections.)

The Basis of Allotment to the Eligible Employees, who have Bid at the Offer Price of   Rs 60 per Equity Share, was finalized in consultation with the BSE. This Employee Reservation Portion has been subscribed to the extent of 0.61 times. The total number of Equily Shares Allotted in this category is 2238000 Equity Shares to 522 successful Eligible Employees.

The category-wise details of the Basis of Allotment are as under (sample):

Category No. of
Applications
Received
% of
Total
Total No, of
Equily Shares
applied
% to
Total
No, of Equity
Shares Allotted
per Applicant
Ratio Total No. of
Equity Shares
Allotted
200 21 4.02 4200 0.19 200 1:1 4200
400 20 3.83 8000 0.36 400 1:1 8000
600 13 2.49 7800 0.35 600 1:1 7800
800 11 2.11 8800 0.39 800 1:1 8800
1000 24 4.60 24000 1.07 1000 1:1 24000
1200 5 0.96 6000 0.27 1200 1:1 6000
1400 6 1.15 8400 0.38 1400 1.1 8400
1600 11 2.11 17600 0.79 1600 1:1 17600
1800 12 2.30 21600 0.97 1800 1:1 21600
2000 18 3.45 36000 1.61 2000 1:1 36000

The under subscribed portion of 16,30.747 Equity Shares in the Employees Reservation Portion category has been added to the Net Offer. The said under subscribed Equity Shares were allocated to QIB. Non Institutional Investors and Retail Individual Investors in the ratio of 50:15:35.

The Board of Directors of the Company at its meeting held on May 17.2017, has approved the Basis of Allotment of the Equity Share approved by the Designated Stock Exchange, being BSE and Allotted the Equity Shares to various successful Bidders. The Allotment Advice-cum-Refund Intimations are being dispatched to the address of the investors as registered with the depositories. Further, instructions to the Self Certified Syndicate Banks for unblocking of funds and transfer to the Public Offer Account, as applicable have been issued on May 18.2017. The Equity Shares Allotted to the successful Applicants have been credited on May 18,2017 to their beneficiary accounts subject to validation of the account details wilh the depositories concerned. In case the unblocking of funds or credit of shares is not received within ten days, investors may contact the Registrar to the Offer at the address given below. Our Company is taking steps for completion of the necessary formalities to get the Equity Shares admitted for trading on the BSE and the NSE within six Working Days from the Bid/ Offer Closing Date.

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.

INVESTORS PLEASE NOTE

These details of the Allotment made shall be hosted on the website of Registrar to the Issue, Alankit Assignments Limited at www.alankit.com

All future correspondence in this regard may kindly be addressed to the Registrartrar the Offer quoting full name of the First/ Sole applicant Serial number of the ASBA form. number of Equily Shares bid for, name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below:

Alankit Assignments Limited
205-206. Anarkali Complex. Jhandewalan Extension, New Delhi 110 055 Delhi. India.
Tel:+91 11 4254 1234; Fax;+9111 4154 3474; E-mail ria@alankit.com; Investor grievance E-mail-: hudco_igr@alankit.com;
Website: www.alankit.com; Contact Parson: Pankaj Goenka/Bojimonkh; SEBI Registration No.: INR000002532

Place : Mumbai

Date : May 18,2017

For HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED
On behalf of the Board of Directors
Sd/-
Company Secretary and Compliance Officer

HUDCO IPO Basis of Allotment FAQs

Check the basis of allotment document above to know about how the shares are allocated in HUDCO IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).

The HUDCO IPO basis of allotment (published above) tells you how shares are allocated to you in HUDCO IPO and category wise demand of IPO share.

Visit the HUDCO IPO allotment status page to check the number of shares allocated to your application.

Check the basis of allotment document above to know about how the shares are allocated in HUDCO IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).