The Union government will sell up to a 7 per cent stake in State-run housing finance company, Housing and Urban Development Corporation (HUDCO), through an Offer For Sale (OFS) this week, according to a filing with the stock exchange. 

The plan includes selling 3.5 per cent of the company, with an option to sell an additional 3.5 per cent if the offer is subscribed fully. 

The floor price for the sale has been set at Rs 79 per share, a discount of about 12 per cent to the stock’s closing price on Tuesday. 

The government owns 81.81 per cent in the housing finance company, and the sale of a 7 per cent stake may help it to raise about Rs 1,100 crore. 

The government has so far garnered Rs 6,950 crore by selling shares in public sector undertakings in 2023-24, compared with a target of Rs 51,000 crore. 

The stake sale will help the government achieve the minimum public shareholding norm set out by the capital market regulator, the exchange filing has said. 

Minimum public shareholding norms require listed companies to maintain a public float of at least 25 per cent.