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IPO

BondsIndia

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Opening Date

10 Feb 2023

Closing Date

14 Feb 2023

Yield

Upto 8.42%

Tenure

Upto 9 Years

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Home   /   IPO   /    Indore Municipal Corporation

IPO

Indore Municipal Corporation

Ongoing IPO

Indore Municipal Corporation

Opening Date
10 Feb 2023

BondsIndia

AA+

Closing Date
14 Feb 2023

bondsindia

Time to close

Yield
Upto 8.42%

Tenure
Upto 9 Years

IPO Details

IPO Details

Issue Size (Including Green Shoe Option) 244 crores
Face Value ₹1000
Coupon Upto 8.25%
Minimum Number of Bonds 10
Lot Size (Multiplier) 1
Allotment Date (Tentative) 20 Feb 2023
Listing Date (Tentative) 22 Feb 2023
Exchange Bid Time (24 Hours) 10:00 to 17:00

Documents attached

Information Memorandum

 

BondsIndia
Product Note

 

BondsIndia

*Allotment on first come first serve basis

 

ISSUE STRUCTURE

Series
I
Nature Of NCDs
Secured NCDs
Who Can Apply
Everyone
Frequency of Interest payment
Half yearly
Half yearly
Half yearly
Half yearly
Minimum Application
10000 (10 NCDs) across all Series
Face Value/ Issue Price of NCDs (₹/ NCD)
₹1,000 per NCD comprising of 1 STRPP A of Face value of ₹ 250,1 STRPP B of Face value of ₹ 250;1 STRPP C of Face value of ₹ 250 and 1 STRPP D of Face Value of ₹ 250
In multiples of thereafter ()
₹1,000 (1 NCD comprising of 1 STRPP A, 1 STRPP B, 1 STRPP C, 1 STRIPP D)
STRPP with different ISIN
STRPP A
STRPP B
STRPP C
STRPP D
Tenure
3 Years
5 Years
7 Years
9 Years
Face value per STRPP (₹)
Rs. 250
Rs. 250
Rs. 250
Rs. 250
Aggregating to ₹ 1,000 (i.e.,1 NCD)
Coupon (% per annum) for NCD Holders in Category I & II
8.25%
8.25%
8.25%
8.25%
Coupon (% per annum) for NCD Holders in Category III & IV
8.25%
8.25%
8.25%
8.25%
Effective Yield (per annum) for NCD Holders in Category I & II
8.41%
8.41%
8.41%
8.42%
Effective Yield (per annum) for NCD Holders in Category III & IV
8.41%
8.41%
8.41%
8.42%
Mode of Interest Payment
Through various modes available
Maturity/Redemption
3 Years
5 Years
7 Years
9 Years
Put/Call Option
NA

How to invest in the Indore Municipal Corporation IPO?

Application process on BondsIndia platform is simple and seamless.

Click on the details of the company on the home page

Fill in the Application form with the basic details such as Name, email address, mobile number, Pan details, bank and Demat details

Then, confirm the quantity and price and select payment method.

That’s all folks , bidding complete!

Reach out to on info@bondsindia.com for more questions. Thank you for tuning in with BondsIndia.

Why choose BondsIndia?

BondsIndia is an online platform for fixed-income securities such as IPOs, bonds, 54EC bonds, and fixed deposits. With a cumulative pedigree of 50+ years in the bond market, we aim to democratize the market for common investors by stationing detailed insights, expert advice, and keeping a close watch on the market sentiment. BondsIndia brings up-to-date information when IPOs go live, fixed deposits with higher interests, and bonds with competitive price before anyone else.

BondsIndia ditches the traditional ways of investing by offering a Technology based platform for investors that ensures instant online settlements and reduces counter-party risks. Choose BondsIndia for its sleek interface, fail-safe communication and step-by-step guide to ensure a well-placed bid. You can apply for Indore Municipal Corporation IPO on BondsIndia’s website.

Place your bid in three simple steps:

1

Key in Basic Details

2

Choose the IPO Series

3

Place the bid

How to invest in the
Indore Municipal Corporation ?

Application process on BondsIndia platform is simple and seamless.

  • Click on the details of the company on the home page
  • Fill in the Application form with the basic details such as Name, email address, mobile number, Pan details, bank, and Demat details
  • Then, confirm the quantity and price and select a payment method.
  • That’s all folks, bidding complete!

Reach out to on info@bondsindia.com for more questions. Thank you for tuning in with BondsIndia.

AUM

GNPA

NPA

  • Indore Municipal Corporation
    IMC is the governing body of the city of Indore in the state of Madhya Pradesh. The municipal corporation consists of democratically elected members, is headed by a mayor and administers the city's infrastructure and public services. IMC provides urban civic services in an area of 276 square km to a population of around 3.5 million under its jurisdiction. The municipal area is divided into 19 zones and 85 wards of various sizes and populations.
  • Growing economic base, efficient operations, and service delivery track record: Capitalisation is marked by sizeable networth of Rs 16,727 crore as on June 30, 2022, supported by healthy internal accruals. Accruals of Rs 1,988 crore from sale of bulk of its investment in OakNorth Bank in fiscal 2021 also contributed to the strengthening of capital position. Networth coverage for net non-performing assets (NPAs) was also comfortable at around 13.4 times as on June 30, 2022. Consolidated Tier-1 capital adequacy ratio (CAR) was healthy at 27.5% as on June 30, 2022, as was total CAR at 34%. Consolidated on-book gearing was comfortable at 2.8 times as on June 30, 2022 (3.2 times as on March 31, 2022). Given the strong liquidity that IBHFL maintains on a steady-state basis, net gearing was 2.5 times as on March 31, 2022 .
    IMC is the largest municipal corporation in the state of Madhya Pradesh and is witnessing growing industrialisation. IMC, along with its special purposevehicle (SPV), Indore Smart City Development Ltd (50% held by IMC and 50% by the Madhya Pradesh Government), is engaged in augmenting the core infrastructure requirements, viz, adequate water supply, assured electricity supply, sanitation, which includes solid waste management, efficient urban mobility and public transport, affordable housing, etc.
    IMC has a strong track record in terms of coverage and service delivery, with about 100% coverage of solid waste, sewerage, and stormwater drainage. IMC is the first urban local body (ULB) in India to set up waste management under the public-private partnership (PPP) model and has been ranked as the cleanest city in the country six times consecutively by the Ministry of Urban Development (MoUD) in its Swachh Survekshan Survey. Although there are shortfalls in the coverage of water supply, the corporation is likely to address the same going forward.
  • Satisfactory financial performance: The RRs have witnessed continuous growth over the period FY17-FY22 (except FY21), with growth led by non-tax revenue components, revenue grants (devolution from the state government), and assigned revenue. The RRs in FY21 were impacted due to the COVID-19 pandemic-related challenges.
    IMC has reported a consistent revenue surplus over the said period and with a reduction in debtors built up over the years, the adjusted revenue surplus has witnessed a CAGR of around 30% during the said period (from ₹153 crore in FY17 to ₹440 crore in FY22). Revenue surplus/RRs has also been comfortable at an average of around 25%.
  • Structured payment mechanism: IMC is following a structured payment mechanism (SPM) for the existing bonds and has proposed the same for the new bond issuance. The proposed bonds are in the nature of green bonds, to be placed as a public issue.
    The SPM entails the creation of an escrow account of designated own revenue collections (defined as revenues/cash flows being directly levied and collected or recovered by the IMC) with priority for servicing of bonds. Under the SPM, collections under the own revenue heads (viz, tax revenues [property tax, water tax, advertisement tax, etc], rental income, fees and user charges, sale and hire charges excluding betterment tax and building permission fee) will be transferred to a separate escrow account.
  • Comfortable financial position IMC has a track record of fundraising from banks and financial institutions (FIs) to fund its capex plans and had an outstanding debt of ₹579 crore as of March 31, 2022. While the debt levels have witnessed an increase over the past five years, the same has been complemented by growth in the revenue surplus. This has enabled the corporation to maintain healthy coverage metrics with debt/surplus below 2x as on March 31, 2022. The debt service coverage ratio (DSCR) is also expected to remain at a comfortable level for the corporation, based on the current borrowings and capex plans.
  • Lower own revenue source and moderate tax collection efficiency: IMC’s own revenue in the form of property tax income, fees and user charges, and other non-tax revenue components comprise only 46% of the overall revenue receipts during the past three years. The collection efficiency of tax revenue has also been moderate at around 64% during FY20-22 (58% during FY18-FY20).
    A considerable share of RRs comprises GST compensation receipts from the state government, which alone forms 30% of the RR. The corporation receives the share of GST compensation per the state government's budgetary allocations for ULBs (the approximate share of IMC has been around 12%). While the compensation is being received in a timely manner, the susceptibility of revenue to delays in receipt or regulatory changes exists.

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