JNPT to raise Rs2,000 cr through tax-free bonds; seeks SEBI nod

Jawaharlal Nehru Port Trust (JNPT), the country's largest container port, has proposed to the market regulator Securities and Exchange Board of India (SEBI) raising up to Rs2,000 crore through tax-free bonds.

In its draft prospectus filed with SEBI, JNPT has proposed raising around Rs500 crore through bond sales, with an option to retain over-subscription of up to Rs1,500 crore.

''JNPT proposes to issue secured, redeemable, non-convertible debentures of face value Rs1,000 each for an amount of Rs500 crore, with an option to retain oversubscription of up to Rs1,500 crore, such that the overall issue size does not exceed Rs2,000 crore in the fiscal year 2013,'' JNPT said in its draft prospectus.

These bonds, issued by the promoter, government of India, acting through the ministry of shipping, are eligible for income tax exemption under section 10 (15)(iv)(h) of the Income Tax Act, 1961, as amended, JNPT said in its filing with SEBI.

''The net issue proceeds raised through this issue are proposed to be utilised primarily for the purpose of dredging works for deepening and widening of the Mumbai harbour channel and JN Port's navigational channel and capital expenditure for other projects in relation to the port operations,'' JNPT said.

The bond issue will remain open for subscription from 10:00 am to 5:00 pm for a minimum of 3 days, subject to the condition that the category IV portion is fully subscribed or for such extended period as may be decided by the board of trustees or the bond committee, JNPT said.