AHMEDABAD, January 28: The Rs 25-crore component of the Ahmedabad Municipal Corporation bonds, the net public issue offered to the public, was comfortably oversubscribed, according to municipal commissioner BK Sinha.The issue, which opened on January 16 and closed on January 27, is proposed to meet a part of the Rs 440-crores project for drinking water and sewerage.
Earlier, three-fourths of the country's first-ever municipal bond, aggregating Rs 100 crore, meant for firm allotment, was already subscribed by banks, financial institutions and mutual funds. The issue offered 14 per cent per annum interest, payable semi-annually on the outstanding principal till redemption, to be paid in three equal tranches at the end of 5th, 6th and 7th years from the date of allotment.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
