FinanceStock Market

VMC’s Record-Breaking Municipal Bonds Bid: 452 Crores in 1 Second, 1460 Crores in 1 Hour on BSE

The bidding for Vadodara Municipal Corporation’s (VMC) Rs 100 crore green municipal bond took place on the electronic platform of the Bombay Stock Exchange (BSE). Within seconds of the market opening, bids worth Rs 452 crore were placed, and within an hour, bidding reached Rs 1460 crore. These bonds are issued to raise funds for the corporation’s Amrut Yojana 0.2, and it garnered enthusiasm from municipal officials and stakeholders, with applause echoing in appreciation.

Participation by Industries

Under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme of the central government, Vadodara Municipal Corporation received approval from the Securities and Exchange Board of India (SEBI) to issue Rs 100 crore worth of green bonds for projects identified under the scheme. Today, 44 government and private industrial organizations participated in the electronic bidding at the Bombay Stock Exchange, resulting in bids for bonds worth Rs 100 crore being oversubscribed by 14 times within just an hour, starting with bids worth Rs 452 crore at 11 am and reaching Rs 1007 crore by noon.

Issuance of Bonds for Projects

Mayor Pinkyben Soni, Municipal Commissioner Dilip Rana, and Chief Accountant Santosh Tiwari addressed the media, revealing that Vadodara Municipal Corporation had raised Rs 100 crore by issuing green bonds to undertake three projects: a sewage treatment plant with a capacity of 100 MLD under the sewerage account (Rs 6260 crore), a sewage treatment plant and pumping station with a capacity of 21 MLD under the under the stormwater account (Rs 30.63 crore), and a new pressure line and drainage network under the Bill Village account (Rs 6.77 crore), totaling three projects.

Participation of 44 Companies

In March 2022, Vadodara Municipal Corporation had issued Rs 100 crore worth of bonds, oversubscribed by 10 times. Today, the process of online bidding by institutional investors for corporate bonds began at the Bombay Stock Exchange at 11:00 am. Initially, eight companies bid, resulting in bids for bonds worth Rs 100 crore being oversubscribed by 14 times within just an hour, with 44 companies participating in the bidding.

Listing on March 6th

Following the cooperation between government, private companies, and financial institutions, these companies will pay an interest rate of 7.90% on the bonds, which will be listed on March 6th. Mayor Pinkyben Soni, Deputy Mayor Chirag Barot, Standing Committee Chairperson Dr. Shital Mistri, and officials from relevant municipal departments were present during the bidding. Officials expressed joy with applause as the bidding commenced.

Akash Shrivastav

My name is Akash Shrivastav, and I am a Blogger. I have 8 years of experience in blogging for Finance, Business, Investment, Stock Market, Cryptocurreny and more. Through my writing, I aim to provide readers with insightful and informative content.