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Business News/ Money / Personal Finance/  Indore municipal corporation launches 244 crore secured redeemable NCDs
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Indore municipal corporation launches ₹244 crore secured redeemable NCDs

The NCDs have a face value of ₹1000 each, aggregating up to ₹ 122 crore with an option to retain over-subscription of up to ₹122 crore

The secured NCDs proposed to be issued under this issue have been rated IND AA+/Stable as per India Ratings (iStockphoto)Premium
The secured NCDs proposed to be issued under this issue have been rated IND AA+/Stable as per India Ratings (iStockphoto)

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.

Can individuals buy NCDs and how? Any individual can buy NCDs and earn regular interest payments on the invested amount. They can either subscribe when a company announces NCD or buy later in the secondary market. To buy NCDs online, one needs to have an active demat account (stock broking account) and sufficient funds equal to the amount one wants to invest in the NCDs. Individuals must log into their demat account and place a buy order to buy NCDs online.

Dispute resolution: India's law governs the NCDs, the transaction documents, and the issue proceeds agreement. Hence, the parties must bring their dispute to the exclusive jurisdiction of courts and tribunals in Indore. However, in the case of the issue proceeds agreement, the parties must bring their dispute to Mumbai's jurisdiction of courts and tribunals.

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Published: 02 Feb 2023, 12:26 PM IST
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