HUDCO Boosts Borrowing Capacity, Eyes Growth Despite Market Dip

and Urban Development Corporation (HUDCO) has announced a significant expansion of its borrowing capabilities, approving a plan to raise up to Rs 65,000 crore for the fiscal year 2026. The company also increased its overall borrowing limit to Rs 2.5 lakh crore, up from the previous Rs 1.5 lakh crore, subject to shareholder approval. This strategic move comes on the heels of impressive growth figures for HUDCO in FY25, where loan disbursements surged by 123% year-over-year to Rs 40,037 crore, and loan sanctions climbed by over 55% to Rs 1.28 lakh crore. The increased borrowing capacity is intended to support HUDCO's continued expansion in the housing and urban development sectors. The company recently announced plans to raise Rs 2,000 crore through non-convertible debentures (NCDs) via private placement, with a coupon rate of 7.19%. Despite the positive news regarding increased borrowing limits and strong FY25 performance, HUDCO's stock experienced a nearly 4% decline on April 4th. This drop mirrored a broader market downturn, influenced by international trade developments. HUDCO's move to enhance its financial flexibility signifies its ambition to capitalize on its recent growth trajectory and further contribute to India's urban development initiatives.