Jamnagar Utilities eyes Rs 4,000 crore via bonds

Mumbai: Jamnagar Utilities & Power is likely to raise up to ₹4,000 crore through the issuance of 5-year bonds on Wednesday. "The yields on the bonds could likely be around the 7.90% mark," a source aware of the development said. On Wednesday, the five-year government bond was trading at 7.14%. Government bond yields are the benchmarks used for pricing corporate debt.

Jamnagar Utilities & Power establishes, operates, and maintains captive power plants at different manufacturing locations of Reliance Industries. In an EGM held on August 2, the firm had sought approval to offer subscriptions for non-convertible debentures in one or more tranches worth up to ₹4,000 crore on a private placement basis. On August 4, Jamnagar Utilities had made an interest payment of ₹195 crore on its 9.75% secured, redeemable, non-convertible debentures listed on wholesale debt market segment of BSE.

The issue size of those bonds was ₹2,000 crore.


In the year ended March 31, 2023, the company's total income stood at ₹6,790.9 crore as against ₹6,315 crore a year ago, a results statement on the company's website showed.