HUDCO shares rallied above 30% to a new high of Rs 226.45

In a post-budget announcement by the Finance Minister, the share price of Housing and Urban Development Corporation [HUDCO] jumped to a new high of Rs 226.45 per share on NSE, surging over 30% growth in the last two sessions.

HUDCO shares rallied above 30% to a new high of Rs 226.45

The share price upliftment was soon witnessed after the huge announcement of 2 crore new affordable houses to be constructed, leading to an end it 20% percent higher on Thursday. The government-backed financial company has good exposure in affordable housing finance and this would act as a boon for long-term investors.

In the Interim Budget 2024-25, the government is willing to launch a scheme to help deserving sections of the middle class living in rented houses, slums, or chawls, and unauthorized colonies to buy or build their own houses. The Finance Minister has also asserted that 2 crore more homes will be built for the rural poor in the next five years under the continuing PM Awas Yojana [Grameen].

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The state-run NBFC will be reportedly soon transformed into an infrastructure finance company to finance marginal funds and to bring down the cost of borrowing. While it is essential for a company to get an IFC status at least 75% of its assets should be deployed for infrastructure lending and must have a net worth of Rs 300 crore, a minimum credit rating of ‘A’ or equivalent from accrediting rating agencies and a CRAR of 15%.

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