The stock listed at Rs 73.45, a sharp gain of 22.41 per cent against the issue price, on BSE.
The performance of the issue followed the stellar subscription of the Initial Public Offering (IPO), which was nearly about 80 times.
Currently, shares are trading at Rs 75.40, up 25.67% from its issue price.
As of 11.22 am, Hudco shares traded 23 per cent higher at Rs 73.75.
Housing and Urban Infrastructure Finance (HUDCO) got listed on the stock markets on Friday with a premium of 21.67% over its issue price.
The government-run firm's share opened at Rs73.45 and touched a high and a low of Rs76.70 and Rs70.55, respectively.More news: 3 hurt after Ferris wheel fall in Washington state
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The government sold just over a tenth of its stake in a heavily oversubscribed initial public offering that raised 12.2 billion rupees ($188 million).
The portion reserved for qualified institutional buyers (QIBs) was subscribed 55.45 times, non-institutional investors saw a subscription of 330.36 times and retail investor's category was subscribed about 11 times.
Investors are now watching the IPO of India Grid Trust that closes later on Friday.
IDBI Capital Markets, SBI Capital Markets, Nomura and ICICI Securities were the book running lead managers to the issue.
HUDCO offers loans for housing projects, such as urban and rural housing, co-operative housing, community toilets, slum upgradation, staff housing, repairs and renewals, private sector projects, land acquisition, and housing programs.