Gandhinagar: The Gandhinagar Municipal Corporation (GMC) is set to make history by becoming the first among Gujarat’s smaller civic bodies to issue municipal bonds, marking a significant step towards financial self-reliance and urban development. A ceremony to commemorate this landmark event will be held on June 25, 2025, from 10:00 am to 11:30 am at GIFT City, Gandhinagar.

With the approval of the Securities and Exchange Board of India (SEBI), the bond will be listed on the National Stock Exchange (NSE), providing a transparent and accessible investment platform. Valued at ₹1,00,000 per bond, the minimum investment is 10 lots (₹10,00,000), and the subscription window will be open for just one hour on June 20, 2025. The bond targets High Net-worth Individuals (HNIs) and offers not only financial returns but also an opportunity to contribute to Gandhinagar’s infrastructure development.

The ₹25 crore raised through this issue will be used to upgrade two key city roads: CH-0 to Rakshashakti Circle and Dholakuva Circle to Pancheshwar Circle. These road improvements are expected to enhance traffic management and significantly improve daily commuting for residents.

Issuing municipal bonds involves strict compliance, detailed planning, and financial transparency. In preparation, GMC underwent a rigorous evaluation by independent credit rating agencies and received high ratings — ‘AA-’ by CRISIL Ratings Ltd and ‘AA’ by CARE Edge Ratings Ltd — signifying sound financial health and effective management.

Additionally, in line with SEBI norms, the corporation has adopted an accrual-based accounting system, replacing the traditional cash-based model. The accounts have been successfully audited, ensuring credibility and accountability for prospective investors.

While major municipal corporations like Ahmedabad, Surat, Vadodara, and Rajkot have previously issued bonds to fund infrastructure projects, GMC’s entry into this space sets a new precedent for smaller urban bodies. The move is expected to catalyze urban development and improve the standard of living for Gandhinagar’s citizens. DeshGujarat