Mumbai : National Highways Authority of India’s public issue of tax-free bonds was oversubscribed on the first day, with the state-owned company having received bids close to 212.07 bln rupees against the 100-bln-rupee worth of bonds on offer. The base size of the issue is 10 bln rupees, with a greenshoe option of 90 bln rupees.

The issue is scheduled to close on Dec 31. However, according to sources, the issue might pre-close by next week. According to sources close to the development, NHAI’s tax-free issue got around 47,915 applications.

The state-owned company’s bonds got the highest response from qualified institutional buyers, followed by corporate investors with these categories getting subscribed 4.07 times and 3.53 times, respectively.

The retail investor category, for which 40% of the issue size has been earmarked as per government rules, also flocked to buy NHAI’s bonds.

For retail investors, the company has offered bonds at a coupon of 7.39% and 7.60%, for 10 years and 15 years, respectively.

For other investors, the coupon was set 25 basis points lower. SBI Capital Markets Ltd, AK Capital Services Ltd, Edelweiss Financial Services Ltd, ICICI Securities Ltd, and Axis Capital Ltd are the lead managers to the issue.

(To view our epaper please click here. For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Free Press Journal

www.freepressjournal.in