Tuesday, December 25, 2012

IIFCL Tax Free Bonds

India Infrastructure Finance Company Limited (IIFCL) will open its public issue of Tax Free Bonds of the face-value of 1,000 each in the nature of secured, redeemable, non-convertible bonds, having benefits under section 10(15)(iv)(h) of the Income Tax Act, 1961, aggregating up to a total of Rs. 1,500 Crores with an option to retain an over subscription upto the shelf limit (i.e. 9,251 Crores ) (CBDT notification authorises IIFCL to issue Bonds for an amount aggregating to  10,000 Crores during FY13. IIFCL has already raised  785 crores on private placement basis).

The issue has 3 investment options - 7.69% p.a. (10 Yrs), 7.86% p.a. (15 Yrs) & 7.90% p.a. (20 Yrs) for investments up to and including  10 Lakhs and 7.19% p.a. (10 Yrs), 7.36% p.a. (15 Yrs) & 7.40% p.a. (20 Yrs) for investments above 10 Lakhs. 

The issue starts on December 26, 2012. Allotment will be on a first come first serve basis across all categories and has been rated "[ICRA] AAA (Stable)" by ICRA, "BWR AAA (Stable)" by Brickwork, "CARE AAA" by CARE.

Note: In case of tax-free bonds the interest earned on the invested amount is exempted from income tax. These are different from tax-saving bonds in which the invested amount is allowed for deduction from the total taxable income.

For further details check out the following link: IIFCL Tax Free Bonds

No comments:

Post a Comment

15 Stock Investment Tips from Rakesh Jhunjhunwala

1. Always go against tide. Buy when others are selling and sell when others are buying.  2. If you believe in the growth prospects o...