We are pleased to share an opportunity to invest in Tax-Free Bonds issued by “Housing and Urban Development Corporation Ltd” (HUDCO) a public sector company fully owned by Govt. of India. TheInterest earned on these bonds is fully exempt from tax, irrespective of the amount or the investors’ Tax status. The bonds have been rated AA+ by CARE & IRRPL and carry an attractive tax-free coupon of 7.84%p.a. (10 Years) & 8.01% p.a. (15 Years) for retail applicants. The TAX Free interest is payable annually.
Bond Details:
Details
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Particulars
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Issue Opening Date
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09-Jan-13
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Rating
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AA+ by CARE & IRRPL
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Issuance
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Physical & Demat Mode
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Listing
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Proposed on NSE
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Nature
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Secured & Tradable
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Series of Bonds
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Tranche-1 Series I
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Tranche-1 Series II
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Tenure (in Years)
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10
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15
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Coupon - Category I ,II, III & IV
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7.34%
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7.51%
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Additional Coupon (p.a.) for Retail Category (IV)
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0.50%
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0.50%
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Aggregate Coupon rate for Retail category (IV)
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7.84%
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8.01%
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# Retail Category IV – Individual Investor who apply for Bonds upto 10 Lakhs.
Illustration of Pre-Tax Yield:
Retail Applicants
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10 Years
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15 Years
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Tax Free Returns
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7.84 %
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8.01 %
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Pre-Tax Yield
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11.36 %
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11.61 %
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Assuming 30.9% tax bracket
Company Overview:
Housing & Urban Development Corporation Ltd. (HUDCO) is a public sector company fully owned by Govt. of India for financing of housing and urban infrastructure activities in India. HUDCO was incorporated on April 25, 1970 under the Companies Act 1956. The cardinal objective of HUDCO is to undertake housing and urban infrastructure development programmes in the country, provide long-term finance for construction of houses for residential purposes in urban & rural areas and finance or undertake, the setting up of the new or satellite towns and industrial enterprise for building material.
For application form or any clarification or assistance kindly revert back.
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