NMC’s Rs 200 Crore Clean Godavari Municipal Bonds Lists Ahead of Nashik Kumbh 2027

Mumbai: Nashik Municipal Corporation (NMC) has listed its first municipal bonds worth Rs 200 million, ‘NMC Clean Godavari Bonds’, on the National Stock Exchange, aiming to leverage municipal finance for infrastructure projects in India.

With a base issue size of Rs 100 billion and a green shoe option of Rs 100 billion, the private placement received a subscription from institutional investors of more than 3.95 times the base issue size. This issue makes Nashik the third municipal corporation in Maharashtra to raise funds through capital markets.

In 2017, Pune became the first municipal corporation in India to raise funds through capital markets under the SEBI framework. In India’s municipal bond market, around Rs 3,784 million was raised through 26 issues by 19 municipal corporations.

The funds mobilized by this NMC issue will be channeled into major infrastructure projects in view of the upcoming Simhastha Kumbh Mela in 2027: construction of the footbridge of Ram Jhula, construction of a retail plaza and general development near Kalaram Temple, construction of the proposed command and control center near Kapaleshwar Temple and sewerage network improvement works for the administrative districts of Panchavati, Satpur and Nashik West.

Manisha Khatri, commissioner and director of NMC, said NMC completed the entire process of fundraising within 4 to 5 months and is also working on the second bond issue.

While delivering his speech, Maharashtra chief minister Devendra Fadnavis said: “I hope other government institutions in Maharashtra will be listed on NSE soon.”

“The 3.95 times oversubscription reflects the growing confidence of institutional investors in municipal bonds as a reliable asset class,” said Ashishkumar Chauhan, MD and CEO, NSE. “NSE is committed to helping cities and local institutions raise capital for sustainable urban infrastructure in a transparent and efficient manner. The listing of NMC Clean Godavari Bonds further strengthens the foundation for future municipal bond programs across the country,” Chauhan said.