Indore municipal corporation has launched secured redeemable non-convertible debentures (NCDs) of face value of ₹1000 each, aggregating up to ₹ 122 crore, with an option to retain over-subscription of up to ₹122 crore, taking the total issue size to ₹244 crore. The issue will open on 10 February and will close on 14 February.
Each NCD would comprise four separate transferable and redeemable principal parts, with each having a face value of ₹250. The issue offers a rate of return of 8.25% per annum payable half yearly.
The entire application amount is payable on application. The actual allotment of NCDs may take place on a date other than the Deemed Date of Allotment. All benefits relating to the NCDs including interest on NCDs/ any STRPP forming part of the NCD shall be available to the NCD Holders from the Deemed Date of Allotment. The NCDs are proposed to be listed on National Stock Exchange of India Limited.
The secured NCDs proposed to be issued under this issue have been rated ‘IND AA+/Stable’ as per India Ratings and ‘CARE AA;(Stable)’as per Care Ratings.
The NCDs and the transaction documents (other than the Issue Proceeds Agreement) will be governed by and construed in accordance with the laws of India and the parties submit to the exclusive jurisdiction of courts and tribunals in Indore. The Issue Agreement shall be governed by and construed in accordance with the laws of India and the parties submit to the exclusive jurisdiction of courts and tribunals in Mumbai.