While IPO parties becoming a thing of the past, the frenzy for tax-free papers is just reaching its zenith in the Indian market.
Investors are rushing into these bonds at the fag end of the financial year, amid mounting fears that no tax-free bond issue will be announced in the next financial year.
Hudco, whose Rs 1,788.50 crore tax-free bond issue opened on Wednesday, had to foreclose it on the second day itself, as the issue got oversubscribed on the first day itself.
Last week, the second tranche of tax-free bonds from NHAI had to be foreclosed on the third day following strong demand from investors.
