Housing and Urban Development Corporation Limited signed a Memorandum of Understanding with the Government of Bihar on September 2, 2026, to provide financial assistance for industrial infrastructure development.

The agreement outlines a commitment of ₹25,000 crore over a five-year period. The funds will support the development of industrial parks across various districts in the state, including the acquisition of land for these projects.

Deal Structure and Terms

The loan will be availed in tranches by a statutory authority specifically designated by the state government. HUDCO will provide funds on flexible terms, including a moratorium period and a repayment schedule extending up to 25 years. Borrowers also have the option to prepay the loan.

Repayment will be secured through escrowing revenue generated from the projects or by ringfencing other sources of revenue from identified receivables or the state budget. This structure aims to ensure timely payments to HUDCO.

Implementation Framework

The Infrastructure Development Authority, Bihar (IDA), is entrusted with facilitating and implementing the identified infrastructure development initiatives. Separate operational agreements specifying the scope of work and terms will be executed based on mutually agreed terms between the parties.

The MoU remains valid for three years from the date of execution, subject to annual review. The signing was witnessed by Shri Kundah Kumar, Managing Director of IDA, and Shri Sanjay Kulshrestha, Chairman and Managing Director of HUDCO.

Housing & Urban Development Corporation Ltd shareholders approved a special resolution to raise up to ₹70,000 crore through non-convertible bonds at its 56th annual general meeting on August 24, 2026. The resolution received overwhelming support, with 99.99% of votes polled in favour.

The Navratna CPSE also declared a final dividend of ₹1.50 per equity share for FY26. While the financial resolutions passed with broad consensus, the voting data reveals notable dissent from non-institutional shareholders regarding specific director appointments.

Voting Results Overview

The meeting was held via video conferencing. Remote e-voting ran from August 20 to August 23, 2026. Ms. Parul Jain of VAP & Associates served as the scrutinizer. A total of 1,716,731,934 shares voted on the special resolution for the debt issuance, representing 85.76% of outstanding shares.

Shareholder Sentiment Divergence

While promoter holdings (representing the government) voted unanimously in favour of all resolutions, public shareholder sentiment varied significantly across agenda items. Institutional holders showed strong support for all items, with dissent rarely exceeding 7%.

However, non-institutional retail and high-net-worth investors displayed substantial opposition to governance-related appointments. For the reappointment of Shri Daljeet Singh Khatri as Director (Finance), 89.74% of votes from non-institutional holders were cast against the resolution. Similarly, 89.86% of non-institutional votes opposed the appointment of Shri Baldeo Purushartha as Part-time Official (Government) Director.

Despite this strong dissent from the non-institutional segment, the sheer weight of the promoter stake (1,501,425,000 shares) ensured these ordinary resolutions passed comfortably. This pattern suggests that while retail shareholders may have concerns regarding specific board composition changes, they largely backed the company’s core financial strategy, including the massive debt fundraising mandate.

Key Resolutions Passed

The agenda comprised four ordinary business items and two special business items. Key outcomes included:

• Adoption of standalone and consolidated audited financial statements for FY26.
• Declaration of a 15% final dividend (₹1.50 per share) as recommended by the Board.
• Reappointment of Shri Daljeet Singh Khatri as Director (Finance) upon retirement by rotation.
• Authorization for the Board to fix remuneration for statutory auditors for FY27.
• Appointment of Shri Baldeo Purushartha as Part-time Official (Government) Director.
• Approval to raise funds up to ₹70,000 crore via private placement of non-convertible bonds or debentures.

Governance and Attendance

Shri Sanjay Kulshrestha, Chairman & Managing Director, presided over the proceedings. Other directors present included Shri M Nagaraj (Director, Corporate Planning) and Shri Daljeet Singh Khatri. Presidential representatives from the Ministry of Housing and Urban Affairs and the Ministry of Rural Development attended physically and via video conference, respectively.

The Company Secretary confirmed that the requisite quorum was present as per National Securities Depository Limited records. As on the record date of August 17, 2026, there were 769,105 shareholders.