Indore Gets Rs 720 Crore on Green Bonds to Build Largest Solar Plant

INDORE: The IMC Green Bonds subscription closed on Tuesday recording an overwhelming response by investors- a landmark achievement.

“IMC first-of-its-kind Initial Public Offering (IPO) – Green Bond — in the country received overwhelming response even on its opening day (February 10) since it was oversubscribed by garnering more than Rs 600 crore investment. On the closing day, the IPO was oversubscribed by around three times with investors showing interest for Rs 720.25 crore investment,” Indore Smart City Development Limited CEO Divyank Singh said.

He added that the IPO of Rs 244 crore was equally divided four categories namely Institution, corporate, High Net worth Individuals and Retail of Rs 61 crore each. As per the inputs given by Mr Singh, the IPO received maximum subscription of 3.76 times ( Rs 229.35 crore) in Institution, followed by 3.35 times (Rs 204.57 crore) in Corporator, 2.89 times (Rs 176.33 crore) and 1.81 times ( Rs110.50 crore) in HNI categories.

Indore Municipal Corporation is meant to generate Rs 244 crore by selling a total 24.40 lakh units of bond that will be divided among subscribers in proportion to their demands.

Up next, the application will be verified by the registerar, the bonds will be equally divided and the documents contianing the details of the investors will be submitted to the National Stock Exchange. The lisiting will take place on 22-23rd February. It is speculated that CM Shivraj Singh Chauhan would be present during the event.

The bonds would be used for installation and operation of a solar power plant of 60 megawatts at Madhya Pradesh’s Samraj and Ashukhedi villages in Khargone district. It is expected to be the largest solar plant meant for pumping and supplying water from Narmada.

Green bonds are debt securities issued by a public or private organisation to finance or refinance projects that have a positive impact on the environment. Uttar Pradesh’s civic body Ghaziabad Nagar Nigam (GNN) had issued India’s first green municipal bond for setting up of a ‘tertiary water treatment plant’.

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