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The National Highways Authority of India (NHAI), which raised 10,000 crore tax-free bonds, will list them on the bourses by the end of next week.
Cash refunds to the subscribers who have not been allotted the bonds, will start on Friday. A total of`15,200 crore has to be refunded by the authority. Owing to its high tax-free interest rates, the authority got applications worth `25,200 crore for the bonds.
A senior NHAI official said, “The Bombay Stock Exchange (BSE) has approved the basis of allotment and by the end of next week, we will be able to list the bonds. Listing will take place on both BSE and the National Stock Exchange.”
On the allotment of the bonds to the various categories of investors, the official said, “Investors who have applied for `5 lakh and less in the retail category will get full allotment, while the high net worth individuals (HNI) category will get 62% of the applied amount. In the ‘others’ category, the subscribers will be allotted 35-40% of the total application.”
The break-up of the Rs10,000 crore corpus was `3,000 each in the retail and HNI, and the remaining `4,000 crore for qualified institutional buyers.
The authority had got 60% subscription in retail while the HNI and other category was oversubscribed by two times and four times, respectively. “It is the 40% of the retail category that was transferred to the HNI bracket, which resulted in expanding the basket,” the official added.
NHAI’s bond issue opened on December 28 and got oversubscribed on the first day in the high net worth individuals (HNI) and institutional investors category.
The bonds have maturity periods of 10 and 15 years and the offering will get listed on both NSE and BSE. Interest rates are 8.20% and 8.30% per annum for the maturity periods of ten years and fifteen years, respectively.
The funds raised will be deployed by the authority to fund the upgrade of single-lane highways in the country as well as for compensation for land acquisition for expressways. The government has identified Bombay-Baroda expressway for the
same.
Land notification for the expressway has been initiated. A total of 6,000 hectares of land will be required for the expressway, which will cost around `8,000 crore.
