This entry is part 8 of 9 in the series Tax Free Bond -2015-16


hudco bondHousing Development Corporation (HUDCO- Tranche 1) launched public Issue of Tax Free Bond. Issue open for subscription on 27 Jan 2016 & close on 10 Feb 2016 with an early closure option . Issue of Rs. 500 Cr. with an option to retain over subscription upto Rs. 1711.50 Cr

   

Product Note

Issue Highlight –Tranche 1
IssuerHUDCO Tax Free Bond - Tranche I
Type of InstrumentSecured, Redeemable, NCD
Issue Open27 Jan 2016
Issue Close10 Feb 2016 ***
Issue Size500 Cr with an option to retain oversubscription upto 1711.50 Cr
Face ValueRs. 1,000
Min. Application Size5 Bonds (Rs.5000) & multiply of 1 Bond thereafter
Interest Annual
Mode of AllotmentD'mat & Physical Form
RatingAAA CARE
ListingBSE
Interest on Application Money5%
Security CoverAt least 100% of the outstanding Bonds at any Point of time

Issue Structure – Interest Rate

10 Years15 Years
For Category I,II, III
Coupon Rate %7.02%7.27%
Category IV ( Retails)
Coupon Rate %7.39%7.64%

Cheque Details-  

Retail Investor           :  ” HUDCO  Tax Free Bonds

 Note :   Application will be rejected if banked without uploading in the electronic system of the recognized stock exchange. (Bidding process)

 

About Issue

About the Issuer

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 company Act 1956.  HUDCO  is a techno-financial institution engaged in financing and promotion of housing finance and urban infrastructure project throughout India.

The cardinal objective of HUDCO is to undertake housing & urban infrastructure development programs in the country provide long-term finance for construction of houses for residential purposes in urban & rural areas & finance or undertake, the setting up of the new or satellite towns and industrial enterprise for building material. Business is broadly classified into following two platforms: Housing Finance and Urban Infrastructure Finance.

Share Holding pattern : 99.99% by President of India & rest of public share holding

Business is broadly classified into following two business platforms:

  • Housing finance, wherein the beneficiaries of our financing include State Govt. agencies and borrowers belonging to all section of the society in urban and rural areas.
  • Urban Infrastructure Finance, wherein the beneficiaries of our financing include projects relating to social infrastructure and area development, water supply, sewerage  and drainage, roads and transports, power, emerging sector, commercial infrastructure and others.

 Benefit to Investor

  • The Income by way of Interest on these Bonds is fully exempt from Income Tax as per provision under section 10(15) (iv) (h) of IT act. ( Tax Free Bond Interest  not part of Total Income)
  • No deduction of TDS from the interest
  • No upper limit on investment amount
  • No lock in period for the Bonds
  • The Bonds shall be listed and can be traded on BSE
  • Capital Gain Benefit – capital gain arising on the transfer of listed bonds shall be taxed @ 10% without Indexation or @20% with Indexation.

Subscription

Listing

Allotment Listing Details  Hudco Tax Free Bond Tranche   chart with ISIN No BSE/NSE Code

Application Form & Investment Call : Rajendra 771991 7444

rajendra@puneinvest.com

Mobile 7719917444