The Indore Municipal Corporation (IMC) received an overwhelming response from investors for its green bonds issued to set up solar power plants.
The public issue for the green bonds had a base price of Rs 122 crore, but it received a subscription of Rs 721 crore, which is almost six times more than the base price, according to IMC officials. The green bonds were floated to raise a total of Rs 244 crore for the establishment of a 60 MW solar power plant, the first of its kind offering by any civic body in the country in the capital market.
The bond received a subscription of Rs 661.52 crore on the first day of opening, and by the time it closed on Tuesday, the amount reached Rs 720.75 crore, reports PTI.
Institutional investors subscribed the maximum amount of Rs 229.35 crore, while corporate investors subscribed Rs 204.57 crore. Retail investors and high net-worth individuals (HNIs) subscribed Rs 176.33 crore and Rs 110.50 crore, respectively.
The funds raised from the green bond will be used to set up a solar power plant to generate electricity to bring water from the Narmada River in Jalud village, which is located in the neighbouring Khargone district, about 80 kilometres from Indore. IMC spends about Rs 300 crore annually to pump water to every household in Indore from Jalud on electricity, and this solar power plant will significantly reduce this cost.