Ahmedabad Municipal Corporation's (AMC) Rs 200-crore bond issue were fully subscribed within two minutes after its bidding opened on the trading platform National Stock Exchange on Friday.
Of the Rs 200 crore issue, the civic body was expecting to raise Rs 100 crore. An additional Rs 100 crore issue was kept as a green-shoe option - the option grants an underwriter the right to sell more shares than originally planned. However, AMC Commissioner Vijay Nehra said that the issue was oversubscribed by more than 10 times at Rs 1,085 crore.
"This subscription rate is unprecedented and the highest in the history of all municipal bonds across India," Nehra said.
He said the response to the issue may have spurred by AA+ rating (the rating designates the creditworthiness of the issuer) that the AMC received from Crisil last month. "The bonds were competitively priced at 8.7 per cent coupon rate," an AMC official said.