India: Valuations seen as a plus but bad loans still a concern in Hudco IPO

Ahead of the opening of the initial public offering (IPO) of Housing and Urban Development Corp. Ltd (Hudco) on Monday, analysts were mostly upbeat about the company’s valuations, even as concerns on bad loans remain. The government aims to sell a 10.19% stake in Hudco to raise up to Rs1,200 crore, with a price band of Rs56-60 per equity share. The issue will open on 8 May and close on 11 May. Hudco is engaged in wholesale funding, providing loans for housing and urban infrastructure projects. A major chunk of loans is offered to states and their agencies.