Hudco surges 15% to new record high on Rs 14,500 crore MoU With Gujarat government

Shares of Housing & Urban Development Corporation (Hudco) surged up to 15 percent to hit a fresh record high on December 28 on signing a Memorandum of Understanding (MoU) with the State Government of Gujarat. The MoU for an investment of up to Rs 14,500 crore for financing the housing and urban infrastructure projects in the western state.

HUDCO expressed its interest in executing this MoU under the financial services sector in the form of financial assistance, as per its objectives and guidelines to the State Government of Gujarat for eligible sector projects through term loans for Infrastructure projects, the company informed in a regulatory filing

At 10:25 am, shares of HUDCO were trading 15 percent higher at Rs 131.40 on the National Stock Exchange (NSE). The stock has rallied 144 percent so far this year, massively outperforming benchmark Nifty 50 which has risen over 19 percent during this period.

Follow our market blog to catch all the live action

The State Government of Gujarat intends for the overall development of the state by implementing various housing and infrastructure projects. Being a techno-financial institution, HUDCO is in the business of providing financial assistance for housing and urban development projects in the country.

The PSU caters to the various requirements of all sectors, the exchange filing stated.

A total of 12 crore HUDCO shares changed hands so far in the day on BSE and NSE combined, way more than the 1-week average volume of 3 crore shares. The relative strength index (RSI) was at 80.97, indicating that the stock may be in the overbought zone. The PSU stock has surged around 63 percent in just the last month.

Also Read | HUDCO inks pact with Gujarat govt to invest Rs 14,500 cr to finance housing, urban infra projects

According to the latest shareholding pattern, the government holds 81.8 percent stake in the company. While FIIs hold a 0.65 percent stake, DIIs hold a 7.16 percent stake in the PSU. The remaining 10 percent stake is held by the public.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.