This entry is part 4 of 13 in the series Tax Bonds

 

India Infrastructure Finance Company launched its 1o,ooo Cr Tax Free Bond Issue.

Product Note

Issue Highlight –

IssuerIndia Infrastructure Finance Corp. Ltd
Type of InstrumentSecured, Redeemable, NCD
Issue Open26, Dec, 2012
Issue Close11 Jan 2013
Issue Size1500 Cr. with right to retain oversubscription up to Rs. 9,250 Cr. (Shelf Limit)
Face ValueRs. 1,000
Min. Application Size5 Bonds (Rs.5000) & multiply of 1 Bond thereafter
Interest Annually
Mode of AllotmentD'mat & Physical Form
RatingCARE AAA by CARE , [ICRA] AAA - Stable by ICRA , BWR AAA by Brickwork Rating

Issue Structure –

OptionsTranche 1- Series 1Tranche 1- Series 2Tranche 1- Series 3
Tenor10 years15 years20 years
Coupon Rate %
Category - I, II, III7.19%7.36%7.40%
Category - IV (Retail)7.69%7.86%7.90%

About Issue

About the Issuer

  • IIFCL is wholly owned ‘ Government Company’
  • Provide financial assistance to long term infrastructure project in the sector roads & bridges, railways, seaports, airports, Inland waterways, other transportation projects, sewage , water supply , gap pipeline etc.
  • In accordance with GoI policy to boost infrastructure development through PPP projects, their lending initiatives are primarily focused on PPP Projects.

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.
  • No TDS
  • Capital Gain Benefit – capital gain arising on the transfer of listed bonds shall be taxed @ 10% without Indexation or @20% with Indexation.

Issue Drawback 

In case the Bonds held by the original Allottees under Category IV (Retail) are sold/transferred (except in case of transfer of Bonds to legal heirs in the event of death of original Allottee), the coupon rate shall stand revised to the coupon rate applicable for Allottees falling under Cat I,II,III portions

In simple word, additional 0.50% interest only for first investor, No benefit for Retail Investor buy from Open Market.

 

Subscription Data

CategoryNo Bond OfferNo of Bond Bid ForNo of Time Subscribe
11 Jan 2013
Category I22,50,0001,90,98,6008.49
Category II22,50,00022,50,0001.48
Category III45,00,00023,69,2700.53
Category IV60,00,00039,85,7600.66
TOTAL1,50,0002,87,89,2001.92
10 Jan 2013
Category I22,50,0001,21,07,6005.38
Category II22,50,0008,76,2740.39
Category III45,00,00018,82,9200.42
Category IV60,00,00034,32,1190.57
TOTAL1,50,00,0001,82,98,9131.22
9 Jan 2013
Category I22,50,00089,07,6003.96
Category II22,50,0007,03,5740.31
Category III45,00,00016,14,9200.36
Category IV60,00,00030,30,5570.51
TOTAL1,50,00,0001,42,56,6510.95
8 Jan 2013
Category I22,50,00074,50,0003.31
Category II22,50,0003,68,8050.16
Category III45,00,00012,14,6200.27
Category IV60,00,00024,55,5680.41
TOTAL1,50,00,0001,14,88,9930.77
7 Jan 2013
Category I22,50,00070,50,0003.13
Category II22,50,0003,53,8050.16
Category III45,00,0008,98,5700.20
Category IV60,00,00022,11,4170.37
Total1,50,00,0001,05,13,7920.70
4 Jan 2013
Category I22,50,00060,07,6002.67
Category II22,50,0004,18,0690.19
Category III45,00,0009,36,7700.21
Category IV60,00,00022,04,7560.37
Total1,50,00,00095,67,1950.64
3 Jan 2013
Category I22,50,00052,00,0002.31
Category II22,50,0003,50,8000.16
Category III45,00,0008,20,2700.18
Category IV60,00,00018,83,5650.31
Total1,50,00,00082,54,6350.55
2 Jan 2013
Category I22,50,00051,00,0002.27
Category II22,50,0003,35,8000.15
Category III45,00,0007,01,8500.16
Category IV60,00,00016,24,8430.27
Total1,50,00,00077,62,4930.52
31 Dec 2012
Category I22,50,00034,50,1001.53
Category II22,50,0002,84,8000.13
Category III45,00,0006,00,7500.13
Category IV60,00,00012,81,4550.21
Total1,00,00,00056,17,1050.37
28 Dec 2012
Category I22,50,00035,009001.56
Category II22,50,0003,49,4790.16
Category III45,00,0006,11,2500.14
Category IV60,00,00011,07,0440.18
Total1,50,00,00055,68,6730.37
27 Dec 2012
Category I22,50,00032,50,0001.44
Category II22,50,0001,45,4790.06
Category III45,00,0005,63,1500.13
Category IV60,00,0008,64,4180.14
Total1,50,00,00048,23,0470.32
26 Dec 2012
Category I22,50,00015,50,0000.69
Category II22,50,00022,9790.01
Category III45,00,0003,76,7000.08
Category IV60,00,0004,94,5270.08
Total1,50,00,00024,44,2060.16

Allotment/Listing

IIFCL Issue Listing Date :

Listing Date :               25 Jan 2013

Allotment & Listing Details :

Tax Free BondIndia Infrastructure Finance Company Ltd
Issue Open26 Dec 2012
Issue Close 11 Jan 2013
Issue RegistrarKarvy Computershare
Listing ExchangeBSE
BSE Script Code961752 (10 yrs) & 961753 (15 yrs) 961754 (20 yrs)
BSE Script ID719IIFCL23 & 736IIFCL28 & 740IIFCL33
Coupon Rate7.19 (10 yrs) & 7.36 (15 yrs) , 7.40 (20 yrs) Additional 0.50 Category IV
Allotment DateJan 22, 2013
Listing DateJan 25, 2013
ISIN NoINE787H07131 (10 Yr Bond)
INE787H07149 (15 Yr Bond)
INE787H07156 (20 Yr Bond)
Maturity Date22 Jan 2023 (10 yrs)
22 Jan 2028 (15 yrs)
22 Jan 2033 (20 Yrs)
IIFCL Tax Free Bond Allotment Listing PDF

Registrar of Issue :

Karvy Computershare Pvt Ltd (check your allotment link)

 

Trustee for Bondholders :

IL & FS  Trust Company Ltd

Depositories :

NSDL & CDSL