27 March 2012

Earn up to 8.43% pa - Invest in IDFC infra bonds

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Highlights of the Issue:

üSecured, redeemable, non-convertible debentures with tax benefits under the Income Tax Act, 1961
üAdditional Tax benefits available for investments made up to Rs 20,000/-
ü Rated “AAA” by FITCH & ICRA respectively
üInterest Income on the Bonds is taxable 
ü
Option of Issuing either in Demat form or physical form
Issue Details:.
ParticularsOption 1Option 2
Issue OpensMonday, March 19, 2012
Issue ClosesFriday, March 30, 2012
Issue SizeRs 5000 crores
Rate of Interest8.43 % p.aN.A
Frequency of interest paymentAnnualCumulative
Rating “(ICRA)AAA” from ICRA and “Fitch AAA (ind)” from FITCH
Face ValueRs. 5,000/-
Who can applyResident Individuals / HUF
Maturity / Redemption 10 years from the Deemed Date of allotment
Lock-in period 5 years from the Deemed Date of Allotment
ListingNSE and BSE
Minimum SubscriptionRs. 10000/-
Registrars Karvy Computershare Private Limited
Maturity Amount Rs 5000/- per Tranche 3 BondRs. 11,230/- per Tranche 3 Bond
Buy Back Date  Date falling five years & 1 day from the deemed date of allotment
Buy Back AmountRs. 5,000/- per Tranche 3 BondRs. 7,495/- per Tranche 3 Bond
Tax Benefits:

Under section 80C of Income Tax Act, any amount not exceeding Rs. 20,000 per annum, paid or deposited as subscription to long term infrastructure bonds during the previous year relevant to the assessment year beginning April 1, 2011, shall be deducted in computing the taxable income. This is over and above the Rs. 1,00,000 tax benefit available under section 80C.
Tax rateSeries 1Series 2Series 1**Series 2**
10.310.11%9.61%11.23%10.81%
20.612.08%10.95%14.50%13.54%
30.914.45%12.50%18.39%16.74%
**Assuming Buy-Back of Bonds on Buy-Back date

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