Mumbai: The Nashik Municipal Corporation (NMC) listed its maiden ‘NMC Clean Godavari Bonds’ municipal bonds worth Rs 200 crore on the National Stock Exmodify, aiming to utilise municipal finance in India for infrastructure projects.
With a base issue size of Rs 100 crore and a green-shoe option of Rs 100 crore, the private placement received an overwhelming subscription of over 3.95 times the base issue size from institutional investors. This issue builds Nashik the third municipal corporation from Maharashtra to raise funds through the capital markets.
Pune was the first municipal corporation in India to raise funds through capital markets under the SEBI framework in 2017. India’s municipal bond market has seen 26 issuances by 19 municipal corporations, raising about Rs 3,784 crore.
The funds mobilised through this NMC issuance will be deployed towards key infrastructure projects in the view of upcoming Simhastha Kumbh Mela in 2027- construction of pedestrian bridge of Ram Jhula, construction of a vfinishing plaza and general development near Kalaram Temple, construction of proposed command and control centre near Kapaleshwar Temple and sewer network improvement works for administrative zones of Panchavati, Satpur and Nashik West.
NMC completed the entire fund-raising process within 4 to 5 months and are also working on the second bond issue, declared Manisha Khatri, commissioner and administrator, NMC.
Devfinishra Fadnavis, chief minister, Maharashtra, while delivering his address declared,” I am hopeful that other government institutions from Maharashtra will soon list on the NSE.”
“The 3.95 times oversubscription reflects institutional investors’ growing confidence in municipal bonds as a credible asset class,” declared Ashishkumar Chauhan, MD & CEO, NSE. “NSE remains committed to supporting cities and local bodies raise capital in a transparent and efficient manner for sustainable urban infrastructure. NMC Clean Godavari Bonds listing further strengthens the foundation for future municipal bond programmes across the counattempt,” Chauhan declared.
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