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NHAI Unit Plans ₹5,975 Cr Bond Buyback
23 Nov
Summary
- NHAI subsidiary plans ₹5,975 crore bond buyback.
- Buyback aims to utilize surplus cash reserves.
- Market sees revival with major issuances planned.
DME Development Limited (DMEDL), a wholly owned subsidiary of the National Highways Authority of India (NHAI), is poised to execute a significant buyback of its listed non-convertible debentures. The company plans to repurchase ₹5,975 crore worth of bonds out of a total of ₹15,899 crore outstanding. This move is anticipated to occur within the upcoming week.
Sources indicate that DMEDL's decision to proceed with the buyback stems from a comfortable surplus of cash reserves. The company has already successfully repurchased ₹9,924 crore of bonds in earlier phases. SBI Capital Markets is reportedly arranging the current buyback process, underscoring the financial strategy at play.
The buyback unfolds against a backdrop of a reviving corporate bond market, which experienced muted issuance for much of the preceding quarters. This period also sees other major financial institutions preparing to raise substantial funds through bond issuances, signaling renewed activity in debt markets.
