Indore Municipal NCD will open for subscription from 10 February 2023. the company aims for a base issue size of ₹122 Crores.
About the company
The Indore Municipal Corporation was constituted under Article 243Q(1)(c) of the Constitution of India, 1949, and established in the year 1956 under the Madhya Pradesh Municipal Corporation Act, 1956. IMC is the chief municipal body of the Indore city. Presently, Shri Pushyamitra Bhargav is the Mayor and Smt. Pratibha Pal, IAS, is the Commissioner (Nagar Aayukt) of the Corporation.
Indore is the largest city in the Indian state of Madhya Pradesh and among the most populous cities. It is regarded as the headquarters of both the Indore District and the Indore Division. Indore is considered an education hub as it has campuses of both the Indian Institute of Technology and the Indian Institute of Management and is considered an education hub.
The municipal corporation is responsible for carrying out the provisions of the MPMC Act. Also, Indore Municipal Corporation holds a 50% equity shareholding of Indore Smart City Development Limited (ISCDL) which has been incorporated as a Special Purpose Vehicle to implement the smart city proposal of Indore Municipal Corporation under Smart City Mission (SCM).
Objectives of the Issue
- The Corporation proposes to utilize the proceeds raised through the Issue towards Funding capital expenditure towards the installation of a 60 MW Ground Mounted Captive Solar PV Power Plant at Village Samraj & Ashukhedi, District Khargone in Madhya Pradesh.
Indore Municipal NCD February 2023 Details
| Issue Open | Feb 10, 2023 – Feb 14, 2023 |
| Security Name | Indore Municipal Corporation |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 122.00 Crores |
| Issue Size (Shelf) | Rs 244.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | NSE |
| Credit Rating | IND AA+/Stable by India Ratings and CARE AA; Stable by CARE Ratings Limited. |
| Tenor | 3, 5, 7, and 9 years |
| Series | Series I |
| Payment Frequency | Half-yearly |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustees | VISTRA ITCL INDIA LIMITED |
Coupon Rates
| Series 1 | ||||
|---|---|---|---|---|
| STRPP with different ISIN | STRPP A | STRPP B | STRPP C | STRPP D |
| Nature | Secured | |||
| Frequency of Interest Payment | Half Yearly | |||
| Tenor | 3 Years | 5 Years | 7 Years | 9 Years |
| Coupon Rate (Retail) | 8.25% | 8.25% | 8.25% | 8.25% |
| Effective Yield (% per Annum) | 8.41% | 8.41% | 8.41% | 8.42% |
NCD Rating
The company has received a rating of IND AA+/Stable by India Ratings and CARE AA; Stable by CARE Ratings Limited for the bonds proposed to be issued pursuant to this Issue.
Company Financials
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Reserves and Surplus |
|---|---|---|---|---|
| 31-Mar-20 | 5,119.80 | 1,675.36 | 258.80 | 4,152.11 |
| 31-Mar-21 | 5,991.88 | 1,564.94 | 265.53 | 4,616.16 |
| 31-Mar-22 | 6,373.51 | 1,807.43 | 303.01 | 4,994.85 |
NCD Allocation Ratio
NCDs Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 305,000 |
| Non-Institutional | 305,000 |
| HNI | 305,000 |
| Retail | 305,000 |
| Total NCD’s | 1,220,000 |
Lead Manager(s)
- A.K. Capital Services Limited
- SBI Capital Markets Limited
Indore Municipal NCD Registrar
KFin Technologies Limited
KFintech, Tower-B, Plot No 31 & 32,
Financial District, Nanakramguda, Gachibowli,
Hyderabad, Telangana India – 500 032.
Phone: 04067162222, 04079611000
Email: imc.bonds@kfintech.com
Website: https://karisma.kfintech.com/
Company Contact Information
Indore Municipal Corporation
Narayan Singh Saput Marg,
Shivaji Market, Rajwada, Nagar Nigam,
Indore-452007
Phone: +91 0731-2431610
Email: aoimc@imcindore.org
Website: https://imcindore.mp.gov.in/
Final Thoughts
Non-Convertible Debentures (NCD) are a better investment option for those who are looking for a diversified portfolio. investing in Indore Municipal NCD is purely your personal choice. make a good study and analysis before you make the investment.
Happy Investing
