Description

Greater Visakhapatnam Municipal Corporation announces part redemption of bonds with reduced face value to Rs. 750,000 per bond, effective December 5, 2025.

Summary

Greater Visakhapatnam Municipal Corporation (GVMC) has announced a part redemption of its bonds along with payment of interest. The record date for this corporate action is December 5, 2025. Trading in these bonds will be with reduced face value effective from the same date.

Key Points

  • Bond Code: GVMC-10%-21-12-28-MB (ISIN: INE423G07051, Scrip Code: 929004)
  • Record Date: December 5, 2025
  • Purpose: Part Redemption of Bonds and Payment of Interest
  • Reduced Face Value: Rs. 750,000 per bond
  • Effective Date: December 5, 2025
  • Settlement Number: DR-771/2025-2026
  • Trading members informed to note the reduced face value for trading

Regulatory Changes

No regulatory changes introduced. This is a standard corporate action notice for debt securities.

Compliance Requirements

  • Trading members must trade the bonds with reduced face value of Rs. 750,000 per bond effective from December 5, 2025
  • Members must ensure all trades reflect the correct face value post the effective date
  • Settlement number DR-771/2025-2026 should be referenced for transactions

Important Dates

  • December 4, 2025: Notice Date
  • December 5, 2025: Record Date for interest payment and part redemption
  • December 5, 2025: Effective date for trading with reduced face value (Settlement No. DR-771/2025-2026)

Impact Assessment

Bondholders: Bondholders on record as of December 5, 2025 will receive interest payment and partial redemption proceeds. The remaining investment will be represented by bonds with reduced face value of Rs. 750,000.

Market Operations: Trading members must adjust their systems to reflect the new face value. The reduction in face value indicates partial capital repayment to bondholders, affecting the outstanding principal amount of the bond issue.

Liquidity: The part redemption reduces the outstanding bond size, which may impact liquidity in secondary market trading of these municipal bonds.

Impact Justification

Affects bondholders of GVMC bonds with part redemption and face value reduction, important for debt security investors but limited to specific municipal bond