India's large state-run investors not active buyers for MTNL's bonds - traders

Mahanagar Telephone Nigam

14/11/2022 09:52

** India's large state-run investors not very active buyers for
Mahanagar Telephone Nigam Ltd.'s (MTNL) bond issue on Monday,
merchant bankers say 
 
** State-run MTNL earlier in the day raised 61.10 billion Indian
rupees ($753.09 million) through 10-year government guaranteed
bonds at a semi-annual coupon of 8.00% 
 
** Coupon level sharply higher than market estimates of
7.85%-7.90%, amid absence of any "large bidder," a private
banker says
** "It seems direct investor book was less than 8 billion
rupees, and both the large investors - insurer and PF house have
not put in much money in this issue," the banker adds
 
** Company had plans to raise up to 70 billion rupees from this
issue, but capped the size due to higher-than-expected coupon
bids
 
** MTNL plans to raise 109.10 billion rupees via sale of bonds
this year, and may come up with second tranche of debt issue
towards end of December, traders say
($1 = 81.1320 Indian rupees)
 (Reporting by Dharamraj Dhutia and Bhakti Tambe)
 ((dharamraj.dhutia@tr.com))