HUDCO shares rose 2.06% to ₹182.02 following the announcement of a ₹25,000 crore funding commitment for industrial infrastructure projects in Bihar. The stock was trading at ₹182.02 on NSE after the latest market movement, gaining from its previous close. This represents a significant turnaround for the housing finance company, which had been down over a year despite today's gains. The stock has declined 19.68% so far in 2026 and has shed around 15.54% over the past year. Currently, HUDCO is trading at a price-to-earnings multiple of 8.39 times, with a market cap of ₹36,804.9 crore. The positive market reaction reflects investor confidence in the company's expansion into new infrastructure financing opportunities.
Housing and Urban Development Corporation (HUDCO) has signed a Memorandum of Understanding (MoU with the Government of Bihar worth ₹25,000 crore for industrial infrastructure development. According to the MoU, HUDCO aims to provide financial assistance over a five-year period for the development of industrial infrastructure, including land acquisition for projects. The Government of Bihar is undertaking development of industrial park projects across different districts of the state, requiring timely availability of land for these initiatives. As per Business Standard, the Infrastructure Development Authority, Bihar (IDA) has been entrusted by the Government of Bihar with facilitating and/or implementing identified infrastructure development initiatives, including the development of industrial parks in the state. The MoU was signed on September 2, 2026, at Patna and remains valid for three years from the date of execution subject to annual review.
As reported by HUDCO in a regulatory filing, the company will provide term loans to the extent of ₹25,000 crore for the development of industrial infrastructure, including land acquisition. The loan will be availed in tranches by the statutory authority specifically designated by the State Government. HUDCO will provide funds on flexible terms and conditions, including a moratorium period with a flexible repayment schedule of up to 25 years, with the option of prepayment. The loan will be repaid by escrowing revenue generated from the project or by ring-fencing other revenue sources from identified receivables or the state budget to ensure timely payments to HUDCO. According to Business Standard, separate operational agreements will be signed for individual projects, covering their scope and terms, demonstrating the comprehensive nature of the financing arrangement.
In a separate development, HUDCO disclosed that it has received an Office Memorandum dated September 1 from the Department of Investment and Public Asset Management (DIPAM) regarding its government shareholding. Currently, HUDCO is a government company with a 75% promoter holding, of which 54.27% is held through the Ministry of Housing and Urban Affairs, while 20.73% is held through the Ministry of Rural Development. DIPAM has decided to transfer the shares held in the Ministry of Rural Development's demat account to the demat account of the Ministry of Housing and Urban Affairs. Importantly, the government's overall shareholding in HUDCO will remain unchanged at 75%, with HUDCO stating that further developments will be communicated in due course.
The housing and urban infrastructure projects financier had reported a 35.05% rise in consolidated net profit to ₹851.11 crore for the June quarter of FY27, compared to ₹630.23 crore in the April-June quarter of the previous year. Revenue from operations rose by 26.55% to ₹3,717.17 crore in the June quarter of FY27, up from ₹2,937 crore in the year-ago period. The company's net interest income (NII) rose 21.1% to ₹1,149 crore in the quarter under review, compared to ₹949 crore in the same period of FY26. As per Business Standard, HUDCO is a premier techno-financing public sector enterprise engaged in the field of housing and infrastructure development, having been upgraded to a Schedule-A PSE in 2002 and further conferred the prestigious Navratna status in 2024.
In a significant development, HUDCO has signed another MoU with the Government of Bihar in July 2026, aimed at providing term loans of up to ₹1 lakh crore over a period of five years for various urban infrastructure projects, including land acquisition. According to The Economic Times, this MoU was aimed at facilitating HUDCO in the planning, development and financing of the proposed Greenfield Satellite Cities in Bihar in a time-bound manner, in accordance with the rules and regulations of the state government. Under this MoU, HUDCO shall provide funds on flexible terms and conditions, including a moratorium period and a flexible repayment schedule of up to 25 years, with an option for prepayment, demonstrating the company's comprehensive infrastructure financing commitment to Bihar.
