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Indore Municipal Corporation issues Rs 244 crore secured redeemable NCDs

Published on February 03, 2023
Current context: The Indore Municipal Corporation has issued Non-Convertible Debentures (NCDs) with a face value of Rs 1000 each, for a total of Rs 122 crore, with the option to retain over-subscription up to Rs 122 crore, making the total issue size Rs 244 crore.
Indore Municipal Corporation issues Rs 244 crore secured redeemable NCDs

  • These NCDs offer an 8.25% annual rate of return, paid semi-annually, and each NCD consists of 4 transferable and redeemable tranches, each with a face value of Rs 250.
  • The NCDs will be available for issue from February 10 to 14, 2023 and are planned to be listed on the National Stock Exchange of India.
  • They have been rated as 'IND AA+/Stable' by India Ratings and 'CARE AA;(Stable)' by Care Ratings. The benefits, such as interest on NCDs or any Separately Transferable Redeemable Principal Parts, would be available to the NCD holders from the date of allotment.
  • Debentures are a long-term capital-raising tool for companies. At the same time, NCDs are debentures that cannot be converted into shares or equities and offer higher returns, which is considered a little risky due to their long-term nature.
  • The maturity value of NCDs is fixed and provides fixed returns upon maturity. An eligible corporate must obtain a credit rating from one of the Reserve Bank of India's specified rating agencies before issuing NCDs.

Question: 

Q.1 The Indore Municipal Corporation issued Rs ______ crore in secured redeemable NCDs.
a. 250
b. 244
c. 241
d. 243

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