Union Shipping Minister GK Vasan informed Lok Sabha that some ports in the country received muted response for their tax-free bond issues mainly on account of weak market sentiments and low coupon rates.
While Jawaharlal Nehru Port (JNPT) wanted to raise Rs 2,000 crore through issue of tax-free bonds, the actual subscription was Rs 41.3 crore.
Similarly, Ennore port could mop up only Rs 94.7 crore against the issue size of Rs 1,000 crore. Dredging Corporation of India (DCI), on the other hand, had floated tax-free bonds to raise Rs 500 crore, but the actual subscription stood at Rs 58.8 crore.
Thus, against the total issue size of Rs 3,500 crore, actual subscription stood at only Rs 195 crore. There were reports that the shipping ministry had directed five state-owned ports — Kandla, Vizag, Paradip, New Mangalore and Mumbai — to subscribe to the bonds. Had that not been the case, the actual subscription would have been worse, reports indicate.
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