HUDCO , a Navratna CPSE, has announced the cancellation of its planned bond issue worth Rs 3,000 crore due to higher than expected coupon rates. The company made this decision public through an official communication to the National Stock Exchange of India Ltd. and BSE Limited on August 28, 2025.

Bond Issue Details

The cancelled bond issue was intended to be:

• Unsecured, Taxable, Redeemable, Non-Convertible, Non-Cumulative NCDs
• Face value of Rs 1,00,000 each
• Series-E 2025
• To be issued on a private placement basis

Cancellation of Bond Allotment Committee Meeting

HUDCO had previously scheduled a Bond Allotment Committee meeting for August 29, 2025, to approve the issuance of these Non-Convertible Debentures. However, this meeting has now been withdrawn. The company cited 'higher than expected coupon rates' as the primary reason for the cancellation of the bond issue.

Impact on Investors

In its communication to the stock exchanges, HUDCO clarified that there is no impact on investors as a result of this cancellation. The company stated, "We wish to clarify that there is no impact on investors, as no allotment of securities has been made pursuant to the earlier intimation."

Company's Statement

Shailu Bhardwaj, GM (Finance) and Authorized Signatory for HUDCO, signed the official communication regarding the withdrawal of the bond issue. The statement reads, "We hereby inform you that the said meeting of the Bond Allotment Committee stands withdrawn/cancelled due to withdrawal of the bond issue owing to higher than expected coupon rates."

This decision by HUDCO demonstrates the company's prudent financial management approach, choosing to forgo the bond issue rather than proceeding with higher-than-anticipated borrowing costs. The move also reflects the current interest rate environment and its impact on corporate bond issuances.

Investors and market watchers will likely keep a close eye on HUDCO's future funding plans and any potential re-attempts at bond issuances under more favorable market conditions.

HUDCO is setting ambitious goals for its future growth while also preparing for its upcoming Annual General Meeting (AGM). The company's executive has expressed confidence in achieving substantial expansion in its Assets Under Management (AUM) in the coming years.

Projected Growth and Increased Guidance

A HUDCO executive has stated that a 25% growth in Assets Under Management is achievable in the coming years. This optimistic outlook is accompanied by an expected increase in the company's guidance to 1.50 trillion rupees. The completion of this target is anticipated by the third quarter.

55th Annual General Meeting Announcement

HUDCO has released details of its upcoming 55th Annual General Meeting. The AGM is scheduled for Monday, 15th September, 2025, at 11:30 A.M. (IST). In line with current practices, the meeting will be held virtually through Video Conferencing (VC) or Other Audio-Visual Means (OAVM).

Key Dates for Shareholders

HUDCO has outlined several important dates for shareholders:

The company has stated that the final dividend on equity shares, as recommended by the Board of Directors and if declared at the AGM, will be paid to members within 30 days of declaration.

Conclusion

As HUDCO sets its sights on significant AUM growth and prepares for its 55th AGM, investors and stakeholders will be keenly watching the company's performance in the coming quarters. The ambitious growth targets, coupled with the upcoming AGM, highlight HUDCO's focus on expansion and shareholder engagement in the urban development and housing finance sector.