Housing and Urban Development Corporation Ltd IPO Message Board (Page 114)

As HUDCO is in the lending sector, one of the important parameter to judge financial stock is P/BV.
Some companies in lending to power sector are PTC, REC, PFC.
PTC B/V 28.38,P/BV as on 31/3/17 1.46
REC 144.91,P/BV 1.25
PFC 135.47 P/BV 1.08.
H
As HUDCO is not in the business of lending to power sector, some premium can be given to it as p/bv of 1.6 to 1.8
HUDCO b/v as on sept 2017=43.60.
Assuming full year bv as 45, issue price is reasonable and something is left on the table for investors. Gmp also suggests p/bv of around 1.73. The range can be 1.6 to 1.8.
I am profit positive on Hudco.
Book value already factors in npa.

will we get 5% discount on issue price?

Dear @jonam and @ anandk.....

I do not have information about book value and NPA about this company....maybe i will post later.....But if what is posted by @jonam with regards to NPA is true....then this stock is a big avoid.....Period......Ignore PE analysis...If they price around 36, then can be looked at.....50 is too pricey...

From DRHP Page 17
INTERNAL RISK FACTORS
1. If the level of our non-performing assets in our outstanding loans, advances and investments in projectlinked
bonds were to increase or the NHB-mandated provisioning requirements were to increase, our results
of operations and financial condition would be adversely affected.
As at September 30, 2016, our gross NPAs were ` 24,793.6 million, or 6.87% of our outstanding loans, advances
and investments in project-linked bonds (collectively, the “Loan Portfolio”), compared to ` 23,824.4 million, or
6.68% of our Loan Portfolio as at March 31, 2016. Further, as at September 30, 2016, our net NPAs constituted
2.04% of our Loan Portfolio, compared to 2.06% as at March 31, 2016. The above amounts and percentages do not
take into account loans totalling ` 8,324.5 million made to two companies (“Excluded Loans”), which loans would
have been considered NPAs but for the interim order of the Madras High Court dated August 26, 2015, passed in the
matter of R.K.M. Powergen Private Limited, and the extension of that interim order until further orders by the
Madras High Court pursuant to an order dated November 20, 2015, and the relaxation of the applicable HFC
Directions granted by the NHB for a loan to Nagarjuna Oil Corporation Limited pursuant to its letter dated
September 30, 2015, respectively. If the Excluded Loans had been considered to be NPAs, as at September 30,
2016, our gross NPAs would have constituted 9.17% of our Loan Portfolio and our net NPAs would have
constituted 4.46% of our Loan Portfolio. If in the future we are required to recognise the Excluded Loans as NPAs,
it would have an adverse effect on our results of operations and financial condition

HUDCO IPO – Schedule (Tentative)

13th April – Anchor Investors
14th April – Market Holiday for Ambedkar Jayanti
17th April – Offer Opens
19th April – Offer Closes
24th April – Finalisation of Basis of Allotment
25th April – Unblocking of ASBA
26th April – Credit to Demat Accounts
27th April – Listing on NSE & BSE

HUDCO IPO

GMP-28.75-29
APP- 1175-1225

If Hudco issue price is 50, then it seems reasonable. Since it is absolutely no growth PSU company, high multiple cannot be justified...

So if it trade at 10 x , assuming no growth and PSU tag, the fair value or we call intrinsic value comes to Rs.43......(pls don''t ask me source for eps)

But since market is trading at such a high valuation, many undeserved midcaps are trading at very high multiples...

So on GENEROUS side, this can be given multiples of 15 to 17 times......So listing around 72 to 80 is possible, IF MARKET CONDITION IS FAVOURABLE....

Thinking of buying RAJSHRI lottery, if registrar is karvy....I never get allotment from them....

As far as my understanding of valuing companies that are into financing, P/E ratio do not fit. I mean one should not arrive at the conclusion just looking the P/E multiple solely.

As rightly pointed out by @jonam, market pays premium if the company is in high growth phase and managing risk efficiently.

You are right... Waiting to get info on book value of this company......But do not think this company can be categories into high growth and good at managing risk.. ...PSUs can never be.....hence market premium is difficult to analyse...

Believe me target price can be much lower if market conditions is not good on day of listing on 27 April....Anyway as of now 72 to 80 looks moderate...

HUDCO acronym for HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED is entering the capital market in April. Market participants are mistaking HUDCO as a housing finance company and comparing it with the likes of PNB Housing Finance etc. The fact is totally opposite as 89.88% of the loan book of HUDCO is to State governments and its agencies and 10.17% to private sector.
Housing Finance of total loan portfolio is 31.28% (30.34% to state govt for social housing loans, 0.40% to individuals and 0.57% to private sector companies) and 68.72% of the total loan portfolio is advanced for Urban Infrastructure like water supply projects, Roads and Transport, Power, Sewage and Drainage etc.
Average loan size for Housing finance is Rs.56.66 Crores and for Urban Infra it is Rs.54.54 Crores.
Further fixed rate borrowing constitutes 97.94% of HUDCO’s borrowings whereas it has lent 81.32% of its loans to borrowers at floating rate of interest which is a very serious mismatch in a falling interest rate scenario.
HUDCO was allowed to borrow at very attractive rate of interest via Tax free bonds till 2016 and tax free bonds constitutes 78% of HUDCO’s total borrowing. In the current budget the Central Govt has not provided this facility to HUDCO to borrow via tax free bonds and this will increase the cost of funds for HUDCO substantially.

Equity 2001.9 crs
Profit before Tax 6 month Sept 16 520.17
Tax 171.98
PAT for six months Sepr 16 348.19
EPS Six months Sept 16 1.70
Dividend (for 2016) 5%
Gross NPA including Excluded Loans 9.17%
Net NPA including Excluded Loans 4.46%%
Return on Equity 8.07%
Return on Net Worth 9.18%
Return on Asset 1.90%
Revenue CAGR last 5 yrs 4.44%
PAT CAGR last 5 yrs 2.26%

What is the procedure of allotment?

Sir ,
Please Tell Me IPO Application Konse Day per Lagana Chahiye 1st / 2nd / 3rd
Or There Is No Difference
Your Ans. Should Be Valuable For Me....

Doesn''t make any difference.

God knows when will u people stop asking such senseless questions..... Pls ask some questions to your broker also

Is HUDCO going to open on 5th? or is it just a rumor like CDSL issue?

Again postponed to 17th 😥😉😲

Listing on 27th.
Long Time. Almost 1 month

For the six months ended September 2016, Hudco reported a consolidated profit after tax of Rs 520.17 crore on consolidated revenue (operations) of Rs 1,700.14 crore.(Source VC Circle) If we Annualised this 1050 Cr for FY 17 it gives it a EPS of 5 and PE of 10. If it comes at Rs 50


No need to do any analysis just apply and pray u get allotment IMO once we get RHP and more details GMP will jump if issue price is Rs50

I have done DCF however would like to wait for RHP before sharing

Anyway without DCF at 10 PE it is fundamental buy when Nifty averages around 18 PE big upside will be super dooper IPO

Apply first day and do not worry

IMO recent correction in divis lab is more due to AP based company then FDA. AP based company have history of corporate governance so market will discount it more then it peers by good 30% at CMP it looks cheap however the issue with AP based company is making it risky investment one can by at CMP however have a stop loss at all time. I have some position in this stock

Septa ji , could you have a chance to look at the future light * Dev info SME''s ..thanks in advance

Please advise, should I apply,seeing bad opening of CL educate, as I am new to IPO investment.

Big bang for jio.
Extend till 3 months free.
Jio up to 15th april free up to July.
https://youtu.be/REI1cCP38CU

Khub Jio mere lal🙌🙋🎶🎷🎹📱📲

Year end it time to make some goals clean the portfolio and stayed invested in good stock few tips to do this

1. Take a list of your stock book loss in no performing Stock and move on
2. Evaluate how they have preformed this year compare it will peers if peers r good the swap with peers
example i have ICICI Bank (private bank) peers all private bank HDFC have been better result and better future so sell ICICI and buy HDFC
3. If a particular stock u have has been good add more on dips
4. book some profit
5. and keep investing and be inc=vested at all times
6. take a break and go for holiday Sri Lanka Maldives is my summer holiday break second week of May

Right !

Well said Sir! Problem with investor mind is that we hold on to winners and losers for a long time.

HUDCO Oversubscription
Market Estimates:

Category-wise:

1X Net QIB = 200.19Crs – assuming applications of 30KCrs. = 150X oversubscription

1X NII = 150.14Crs – assuming applications of 60KCrs. = 400X oversubscription

1X RII = 233,555 Forms – assuming 17.50L forms. = 7.50X oversubscription (applic-wise)
i.e. average 40 shares per form

do have to RHP pls share

is this oversubscription includes the QII & NII and RII who will apply at @ 48 and 49 if price band is 48--50. Please clear as in my opinion it will oversubscribed at Cut off price and bids for 50. The oversubscription includes the total bids I.e. At 48, 49 also.

Revised ...

HUDCO IPO – Schedule (Tentative)

13th April – Anchor Investors
14th April – Market Holiday for Ambedkar Jayanti
17th April – Offer Opens
19th April – Offer Closes
24th April – Finalisation of Basis of Allotment
25th April – Unblocking of ASBA
26th April – Credit to Demat Accounts
27th April – Listing on NSE & BSE


Issue Information: (Tentative)

Issue Opens on: 17 April 2017
Issue Closes on: 19 April 2017
Issue Type: Book Built Issue IPO
Issue Size: 20,01,90,000 Equity Shares
Face Value: Rs 10 per Equity Share
Issue Price: Rs.48 – Rs.50 per Equity Share
Market Lot: 300 shares
Listing At: NSE, BSE

Equity Shares outstanding prior to the Issue = 2,00,19,00,000 Equity Shares
Offer for Sale of 20,19,00,000 Equity Shares @50/- aggregating up to Rs.1000.95 Crores
Equity Shares outstanding after the Issue = 2,00,19,00,000 Equity Shares

Category-wise Break up:
Anchor – 6,00,57,000 Shares = 300.29Crs.
Net QIB – 4,00,38,000 Shares = 200.19Crs
NII – 3,00,28,500 Shares = 150.14Crs
RII – 7,00,66,500 Shares = 350.33Crs. (Lot size: 300 = 233,555 Forms)

Total Issue – 20,19,00,000 Equity Shares = 1000.95Crs.

Subscription required for 1X
RII = 233,555 Forms
NII = 150.14 Crs

Interest cost @7%p.a. for 7days = 6.712paise for 1X

Interest cost comes to INR 1.3425 per thousand .1000×7÷100×7÷365=1.3425

If we take 400 times in HNI portion then per share interest cost comes to INR 26.85 .

HUDCO Oversubscription Estimates:

Category-wise:

1X Net QIB = 200.19Crs – assuming applications of 15118 Crs. = 75.52X oversubscription

1X NII = 150.14Crs – assuming applications of 37089Crs. = 247.03X oversubscription

1X RII = 350.33Crs – assuming application of 3525Crs. =10.06X oversubscription

1X RII = 233,555 Forms – assuming 14.50L forms. = 6.20X oversubscription (applic-wise)
i.e. average 48 shares per form

Interest coast for NII @7.5% p.e. for 7 days is 7.192 paise

So minimum GMP is Rs 17.96 and the KOSTAK is Rs 860

Correct me if I''''m wrong
{Note:- This calculation is done by assuming the bse IPO, D-Mart & Shankara Bp ipo as the basis.}

Why blaming registrar, allotment is random some got some didn''t. I got shares allotment and sometimes did not. All is luck

HUDCO IPO
GMP 29.00 – 29.50
Kostak 1100 – 1150