The issue is currently open and will close on October14, 2013.
Who can apply: Resident individuals, HUFs, partnership firms, companies and body corporates, banks, public financial institutions, national investment funds, mutual funds, venture capital, insurance companies, commercial banks, co-operative banks, public/private charitable trusts, industrial research organizations and other eligible categories.
Credit Ratings: CARE, and India Ratings and Research have assigned ratings of AA+ (Double A Plus) to HUDCO’s NCD. Such instruments are considered to have high degree of safety regarding timely servicing of financial obligations.
Application size: The minimum application size is Rs 5,000 for 5 NCDs as the face value of the bond is Rs 1000. The NCD issue aims to collect Rs 750 crore and has a greenshoe option to retain another Rs 4059.20 crore if the issue oversubscribes. The maximum size of issue will be Rs 4809.20 crore.
Effective yield and Maturity:
The issue is offering effective pre-tax return of 12.14% to retail investors who fall under tax bracket of 30.9% in 10 years. Similarly, it would provide effective pre-tax return of 12.68% and 12.65% to retail investors falling under similar tax bracket for the period of 15 and 20 years respectively.
|
Category/ Yield Tenure |
10 Years |
15 Years |
20 Years |
|
Institutional Investors |
8.14% |
8.51% |
8.49% |
|
Corporates |
8.14% |
8.51% |
8.49% |
|
HNIs |
8.14% |
8.51% |
8.49% |
|
Retail investors |
8.39% |
8.76% |
8.74% |
Who can sell the product: Registered stock brokers with any stock exchange along with their respective sub-brokers, banks and intermediaries selected by the issuing company.
How can an IFA register to sell the product: An IFA has to sign the sub-broker agreement with a stock broker to be eligible to sell the bonds.
Tentative brokerage structure: Brokerage ranges between 0.25% and 0.85% depending on the category of investors. Highest brokerage will be offered upfront for the distribution of NCDs to retail investors.
Trustee: SBI Cap Trustee Company
Registrars: Karvy Computershare
Listing: The NCD will be listed on BSE. However, the applicants can also apply for NCDs in physical mode.
Withdrawal of applications: In case of withdrawal, face valueof NCDs will be paid along with the interest that may have accrued at the redemption date.
Lead Managers:Axis Capital, Edelweiss Financial Services, HDFC Bank, Karvy Investor Services and RR Investors Capital Services.
HUDCO has allocated 40% of NCDs for the individual category (Retail), 30% for HNIs, 20% for corporates and rest of 10% for QIB.
