In a historic first in North India, the bond of Lucknow Municipal Corporation (LMC) was listed on the Bombay Stock Exchange in the presence of Uttar Pradesh Chief Minister Yogi Adityanath on Wednesday.
The chief minister participated in the traditional ‘ringing bell ceremony’ and described the listing of the LMC bond as “the starting of a new era” in the history of the state.
“The listing of the Rs 200-crore municipal bond is a step towards self-reliance. UP will play a pivotal role in fulfilling the state’s commitment towards Atmanirbhar Bharat,” the chief minister said in Mumbai.
The chief minister said that the listing of the bond manifested the faith of investors, entrepreneurs and the industry in the policies of Uttar Pradesh.
“The state has achieved second rank in Ease of Doing Business because it provided basic infrastructure facilities to the people of the state,” Yogi Adityanath said, adding that the state was taking giant strides towards industrialisation.
“This listing is important in changing the work culture of the municipal corporations in the state. It will help not only Lucknow in augmenting infrastructural facilities but also motivate other corporations to work in such direction. Ghaziabad Municipal Corporation will soon bring its bond on the BSE,” the chief minister said in the presence of entrepreneurs, investors and BSE officials.
He said it was a matter of pride for UP that the Lucknow Municipal Corporation had raised Rs 200 crore through its bond issue.
“It is the trust of the investors which UP has earned during the last three-and-half years of governance. It will help in improving infrastructure in urban areas,” he said.
The chief minister also said that his government was encouraging the MSME units of the state for listing on NSE and BSE. So far 15 units have taken steps to meet their financial needs by listing on BSE, he added.
“The policies of the Uttar Pradesh government are investment-oriented. We are constantly striving for simplicity and ease for investors. In recent times, due to the single window system, the needs and expectations of the investors are being suitably addressed,” he said.
The chief minister said: “The state has received unprecedented support from the industry at the Uttar Pradesh Investors’ Summit and this effort will continue. Now a defence (manufacturing) corridor is being established in UP, which will be important in making the country a global hub in the field of defence production”
The Lucknow Municipal bond was oversubscribed by 4.5 times. The LMC received bids for an issue size of Rs 200 crore within 60 seconds of the issue opening on November 13. The capital raised is proposed to partially fund the AMRUT (Atal Mission For Rejuvenation And Urban Transformation) projects and other infrastructure projects .
On this occasion, Bombay Stock Exchange MD and CEO Ashish Kumar Chauhan said that the order book was filled more than double in a matter of few minutes which established Lucknow Municipal Corporation as a credible entity in the Indian bond market.
Lucknow Mayor Samyukta Bhatia, UP Industry Minister Satish Mahana; UP’s MSME and Export Promotion Minister Sidharth Nath Singh; Urban Development Minister Ashutosh Tandon, Additional Chief Secretary (Information) Navneet Sehgal; Additional Chief Secretary (Home) and UPEIDA Chairman Awanish Kumar Awasthi and other senior UP officials were also present.