In a debut for Uttar Pradesh, Lucknow Municipal Corporation bonds worth Rs 200 crore were listed on Bombay Stock Exchange (BSE) in Mumbai on Wednesday with Chief Minister Yogi Adityanath ringing the bell to mark the listing.
Adityanath stated that it is a matter of pride for UP that the Lucknow Municipal Corporation has raised Rs 200 crore through its bonds, which got listed on the BSE on Wednesday. “It is the trust of the investors, which UP has earned during the last three-and-a-half years. It will augment our effort to improve infrastructure in urban areas. It shows the improvement in the industrial climate of the state and the trust the investors have reposed in the machinery.”
The bond has received 21 bids and has been oversubscribed by 4.5 times. The bond issue opened for subscription on November 13 and the corporation received bids within 60 seconds of opening.
According to Adityanath's office, the Lucknow Municipal Corporation has become the first civic body in north India to issue bonds, even as the process of issuing municipal bonds by civic bodies started in the country in 1997.
With municipal bonds generally being used for financing public projects, the state capital is now one of the eight cities in India to fund the AMRUT and Smart Cities Mission, as per government data.