Gandhinagar's Municipal Bond Oversubscribed 9X

Gandhinagar, Jun 21 (PTI) Gandhinagar Municipal Corporation's (GMC) debut municipal bond issue received an overwhelming response from investors, being oversubscribed nine times, marking a historic financial milestone.

The Rs 25-crore bond offering garnered bids worth Rs 225 crore in just one hour during the subscription window on the National Stock Exchange, reflecting strong investor confidence in the civic body's financial credentials, the corporation said in a statement.

The bonds, carrying a coupon rate of 7.65 per cent, have positioned Gandhinagar on the national map for urban financial innovations, it said.

The Rs 25 crore raised will be used for the development of iconic and citizen-friendly infrastructure, enhancing traffic efficiency and commuter convenience, it added.

With this, GMC has become the youngest municipal corporation in the country to successfully tap the bond market. It is also the fifth urban local body in Gujarat after Ahmedabad, Surat, Vadodara, and Rajkot and the 17th in India to raise funds through municipal bonds.

In addition, Gandhinagar is expected to receive around Rs 3.25 crore in interest subsidy under the AMRUT scheme, further amplifying the impact of the raised capital.