Housing and Urban Development Corporation Limited (HUDCO), a Navratna CPSE under the Ministry of Housing and Urban Affairs, has announced the raising of up to ₹3,000 crore through the issue of unsecured, taxable, redeemable, non-convertible, non-cumulative debentures (NCDs) under Series-D 2025 on a private placement basis.

The decision was approved by the company’s Bond Allotment Committee at its meeting held on July 17, 2025, and officially disclosed to both the BSE and NSE under Regulation 30 & 51 of SEBI (LODR) Regulations, 2015.

Issue Details and Structure

The issuance is structured as follows:

• Base Issue Size: ₹500 crore

• Green Shoe Option: ₹2,500 crore

• Total Issue Size: Up to ₹3,000 crore

These Series-D 2025 NCDs are:

• Unsecured and non-convertible

• Taxable

• Redeemable after a fixed tenure of 3 years

• Non-cumulative in nature

The face value of each NCD is ₹1,00,000, and the issue will be listed on the BSE.

Tenure and Interest Schedule

The debentures will mature at the end of the third year from the date of allotment, and will carry an annual interest (coupon) rate of 6.64%. The interest and principal payments will be made on the following dates:

• June 17, 2026

• July 17, 2027

• July 17, 2028 (Maturity)

These bonds will be redeemable at par, with no special rights, privileges, or security charges attached.

No Default, No Delays, No Regulatory Objections

The company has confirmed that:

• There has been no delay or default in any previous interest or principal repayments exceeding three months.

• It has not received any adverse letters or observations from regulatory bodies concerning previous NCDs.

• No redemption of preference shares is involved in this issuance.

Purpose and Significance of the Issue

While the regulatory disclosure does not specify exact end-use, such fundraises by HUDCO are typically used for:

• Long-term infrastructure lending

• Affordable housing finance

• Urban development projects

• Working capital and refinancing

As a financial arm of India’s housing and urban infrastructure push, HUDCO plays a vital role in supporting smart cities, housing for all, and AMRUT-aligned projects. This issuance will further augment its lending capacity for FY 2025-26.

About HUDCO

HUDCO, established in 1970, is a Government of India enterprise under the Ministry of Housing and Urban Affairs. It is involved in:

• Financing housing and urban infrastructure projects

• Offering technical and consultancy services for urban development

• Supporting government schemes like PMAY, Smart Cities, and Swachh Bharat

It holds Navratna CPSE status and is listed on both BSE (Scrip Code: 540530) and NSE (Scrip Code: HUDCO).

The company is also ISO 9001:2015 certified and operates from its head office at India Habitat Centre, New Delhi.

Conclusion

HUDCO’s decision to raise ₹3,000 crore via Series-D 2025 NCDs reflects its proactive approach to support its infrastructure and housing finance portfolio. With a moderate 6.64% coupon, the instrument could be attractive to institutional investors seeking stable fixed-income returns in a rising interest rate environment.

As the bonds are to be listed on the BSE, secondary market liquidity is expected to be adequate for larger investors. The company’s strong government backing and stable credit profile lend additional confidence to the issuance.

Let me know if you want a retail investor guide, bond comparison sheet, or infographic summarising this NCD issue

The Upcoming IPOs in this week and coming weeks are Monarch Surveyors & Engineering Consultants, TSC India, Swastika Castal, Savy Infra, NSDL.

The Current active IPO are Monika Alcobev.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.