JNPT to raise up to Rs 2000 cr via tax-free bonds

JNPT to raise up to Rs 2000 cr via tax-free bonds Mumbai: The largest container port JNPT on Friday said it would raise up to Rs 2,000 crore through a tax-free bond issue.

The money raised will be utilised to complete the Rs 1,500-crore dredging project and other development activities within the port, Chairman L Radhakrishnan told reporters here.

"Dredging will take the draft of the channel to 14 meters and we expect to complete it by September 2014," he said.

The issue hits the market on March 11 and closes on 15 and the minimum application should be for a lot 5 bonds, each having a face-value of Rs 1,000 and 1 bond thereafter.

The bonds to be listed on the stock exchanges, carries a coupon rate ranging from 6.82 percent for institutional investors to 7.32 percent for retail investors.

The issue size is Rs 500 crore with a greenshoe option of retaining over subscription of another Rs 1,500 crore.

Radhakrishnan exuded confidence about investors' response to the issue.

When asked if the interest rate being offered is low, he pointed out that the instrument has been rated AAA by Crisil and this is the best rate it could offer as per norms prescribed by the Finance Ministry.

PTI