India Infrastructure Finance Company Ltd (IIFCL) is the latest to come out with tax-free infrastructure bonds to woo investors
Mumbai: India Infrastructure Finance Company Ltd (IIFCL), a fully government owned company is the latest to come out with tax-free infrastructure bonds to woo investors. The bonds can be purchased in demat and physical form and will be listed on the Bombay Stock Exchange. The company may come out second tranche of bond issue if gets a favorable response from investors.
Issue period: 04 February 2011 to 04 March 2011
Interest Rate: 8.15% (Series 1), 8.15% (Series 2), 8.30% (Series 3), 8.30% (Series 3)
Frequency of interest payment: Annual (Series 1 and 3), Cumulative (Series 2 and 4)
Tax Benefit: Investors can avail of tax deductions under section 80CCF. Up to Rs 20,000 deduction is allowed from the total income of an individual. This deduction is available over and above the aggregate limit of one lakh under sections 80C, 80CCC and 80CCD read with section 80CCE.
Rating: “AAA/Stable” from CRISIL and “CARE AAA” from CARE
Issue Size: Rs 1200 crore
Distribution: The bonds will be distributed through sub-brokers across 200 cities in India. Distributors wanting to sell this bond can get a sub broker code from the lead running mangers. Typically, 1% commission is paid out to distributors. In addition, volume based incentives are paid.
Minimum Subscription: Rs 5,000
Lock-in: Five years
Face Value: Rs 1,000
Issue Price: Rs 1,000
Modes of Payment: NECS, At par cheques, DDs, RTGS, NEFT, Direct Credit
Lead running managers: ICICI Securities, SBI Capital Markets Ltd, AK Capital Services Ltd, Bajaj Capital, Enam Securities, Karvy Investor Services, RR Investors Capital Services and Yes Bank
Registrar: Karvy Computershare
Depositories: NSDL and CDSL