Description

GVMC bonds face value reduced to Rs. 750,000 per bond effective December 5, 2025, following part redemption and interest payment.

Summary

Greater Visakhapatnam Municipal Corporation (GVMC) has announced part redemption of its 10% bonds maturing on December 21, 2028, along with interest payment. The record date is set for December 5, 2025, and the bonds will trade with a reduced face value of Rs. 750,000 per bond effective from the same date under settlement number DR-771/2025-2026.

Key Points

  • Bond Code: GVMC-10%-21-12-28-MB (ISIN: INE423G07051, Code: 929004)
  • Record Date: December 5, 2025
  • Purpose: Part redemption of bonds and payment of interest
  • Reduced Face Value: Rs. 750,000 per bond (previously higher)
  • Effective Date: December 5, 2025
  • Settlement Number: DR-771/2025-2026
  • Segment: Debt

Regulatory Changes

No regulatory changes. This is a standard corporate action for bond redemption as per the terms of the bond issuance.

Compliance Requirements

  • Trading members must note that trading in GVMC bonds will be conducted with the reduced face value effective from December 5, 2025
  • All trading and settlement operations must reflect the new face value of Rs. 750,000 per bond from the effective date
  • Members should update their systems and records accordingly

Important Dates

  • Notice Date: December 4, 2025
  • Record Date: December 5, 2025
  • Effective Date for Reduced Face Value: December 5, 2025
  • Settlement Number: DR-771/2025-2026

Impact Assessment

Market Impact: Medium - Affects holders of GVMC municipal bonds who will receive partial redemption proceeds and interest payment. The reduced face value will impact future trading prices and yield calculations.

Operational Impact: Trading members need to update their systems to reflect the new face value for proper pricing and settlement. The bonds will continue to trade but at the reduced face value, affecting liquidity and valuation metrics.

Investor Impact: Bondholders as of the record date will receive part redemption proceeds and accrued interest, reducing their exposure to this municipal bond issue.

Impact Justification

Part redemption of municipal bonds with reduced face value affects bondholders and trading operations but is limited to specific debt instrument.