Salient features of the issue:
❖ First public issue of bonds by an infrastructure finance company under Sec 80 CCF.
❖ Credit rating agency ICRA has rated the Bonds under this offer as “LAAA” with stable outlook, indicating highest safety.
❖ These bonds will be issued only to Resident Indian Individuals (Major) and HUF.
❖ The bonds are fully secured with first floating pari pasu charge over certain receivables of the Company and first fixed pari pasu charge over specified
immovable properties of the Company. The security cover is 1.0 times of the outstanding Bonds at any point in time.
❖The Bonds bear an attractive combination of coupon rate ranging between 7.5% and 8% p.a coupled with tax benefits of upto Rs. 20,000 under Sec 80 CCF.
❖ There are 4 investment options, suiting the needs of different categories of investors.
❖ No TDS shall be deducted.❖ The bonds will be listed on NSE & BSE and can be traded after the 5 year lock - in period.
❖ Investors can mortgage or pledge these bonds to avail loans after the lock-in period.
❖ Under Section 80 CCF of the I.T. Act, an investor in such infrastructure bonds will be entitled to tax deduction of investments of up to Rs. 20,000. The deduction is over and above the Rs. 1,00,000 deduction available under section 80C, 80CCC & 80CCD read with section 80CCE.
Issue Highlights
❖ Issue size: Rs. 3,400 cr in one or more tranches.
❖ Face value: Rs. 5,000.
❖ Minimum Application: Rs. 10,000 or 2 bonds.
❖ Lock-in Period: 5 years.
Issue summary:
❖ Issue opens: 30th Sept 10
❖ Issue closes: 18th Oct 10
❖ Lead managers: ENAM Securities Private Limited, Citigroup Global Markets, Kotak Mahindra Capital Co.Ltd.
❖ Registrar: Karvy Computershare Pvt. Ltd. Debenture Trustees: IDBI Trusteeship Services Ltd.
CREDIT RATING BY ICRA : LAAA
ISSUE T&C :
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can nri invest in this?
ReplyDeletewhich of the 4 options in better?
IDFC's long-term infrastructure bonds, appears enticing only from a tax planning perspective, as an investment upto Rs 20,000 will be eligible for an additional (over and above Rs 1,00,000 benefit limit available under section 80C, 80CCC and 80 CCD of the Income Tax Act, 1961) tax benefit.
ReplyDelete@Anonymous
ReplyDeleteyes..i think NRI can pay in this. i think plan depends on your choice. basically what is your requirement, it matter most. The most important part is "the bonds will be listed on NSE & BSE and can be traded after the 5 year lock"
any ways, nice infomation about the plan. Thanks..
Thanks for detailed description on the vital topic. I do believe to avail Tax deduction from total income as allowable in Income Tax Act, investment u/s 80c is a pivot investment avenues &/or contributions.
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