Shares of Housing and Urban Development Corporation Ltd (HUDCO) rose 1.5% to touch a day’s high of Rs 235.30 on 21st April, after the firm said it had received the green light from the Central Board of Direct Taxes (CBDT), Ministry of Finance, to issue zero coupon bonds worth Rs 5,000 crore.

The firm has approved issuing these bonds to support infrastructure projects across India.

According to an official notification, HUDCO can issue five lakh zero coupon bonds with a maturity of 10 years and one month. These will be issued at a discount of Rs 2,351.49 crore and must be rolled out by 31st March 2027. Bondholders will receive the full amount at maturity.

The funds raised will only be used for infrastructure projects that can repay the debt from their revenues without relying on state governments. The term “infrastructure” includes all sub-sectors listed by the Department of Economic Affairs and any future updates.

Currently, the firm’s market capitalisation stands at around Rs 46,486 crore.

At 12:53 PM, the shares of HUDCO were trading 1.42% at Rs 232.08 on NSE.

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