Business » Industry

Updated: March 9, 2013 00:57 IST

Tax-free bonds from JNPT

  • Special Correspondent
Comment   ·   print   ·   T  T  
L. Radhakrishnan, Chairman, JNPT, addressing a press conference in Mumbai on Friday. Photo: Paul Noronha
The Hindu
L. Radhakrishnan, Chairman, JNPT, addressing a press conference in Mumbai on Friday. Photo: Paul Noronha

Jawaharlal Nehru Port Trust (JNPT) has launched a public issue of tax-free bonds in the nature of secured redeemable non-convertible debentures to raise Rs.500 crore with an option to retain oversubscription up to Rs.1,500 crore. The overall size of the issue can’t exceed Rs.2,000 crore.

The issue opens on March 11, and closes on March 15. Each bond has a face value of Rs.1,000. One can apply for a minimum of 5 bonds and in multiples of one bond thereafter. According to L. Radhakrishnan, Chairman, the bonds, with a tenure of 10 years, will carry a fixed interest of 6.82 per cent per annum. Additional interest rate of 0.50 percentage points, that is 7.32 per cent per annum, will be paid to the original retail investors.

JNPT plans to utilise the proceeds of the bond issue for deepening and widening of the Mumbai harbour channel and JN Port’s navigational channel at an estimated cost of Rs.1,572 crore. The balance will be utilised for land reclamation and other infrastructure purposes. “Since last year we have already started dredging which will be completed in 25 months time,” said Luxman Radhakrishnan, Chairman, JNPT.

More In: Industry | Business
This article is closed for comments.
Please Email the Editor
Get News Delivered To Your Email
Please enter a valid email address.
Kindly confirm the Newsletter subscription by clicking the link that your have received by email

NEVER miss any latest news! we will have it delivered to your inbox!

Please enter a valid email address.
Newsletter has been successfully subscribed.

National

Sport


O
P
E
N

close

Recent Article in Industry

A view of the Ramco Systems office in Chennai. File photo

Ramco Systems inks pact with Melbourne firm

Ramco intends to work with the government aimed at transforming Victoria into a pivotal business destination »