NHB  Tax Free Bond – Issue open 7 Mar 2014

National Housing Bank (NHB) is coming out with a Tax Free, Secured, Redeemable bond issue face value 5000 each, aggregating  to 1000 Cr. National Housing Bank (NHB), country’s Housing Finance regulator wholly own by RBI, and provide support to housing finance institutions.  Last time NHB Issue Fully Subscribe first day so take care and invest first day for confirm allotment.   Allotment Date 24 Mar & Listing Date 26 Mar

 

Product Note

Issue Highlight – 

IssuerNHB Tax Freee Bond Tranche 2
Type of InstrumentSecured, Redeemable, NCD
Issue Open7 Mar 2014
Issue Close18 Mar 2014
Issue Size1000 Cr
Face ValueRs. 5,000
Min. Application Size1 Bonds (Rs.5000) & multiply of 1 Bond thereafter
Interest Annual
Mode of AllotmentD'mat & Physical Form
RatingAAA by ICRA CARE CRISIL
ListingNSE

NHB Issue Structure –

OptionsSeries 1 Series 2Series 3
Tenor10 years15 years20 years
Coupon Rate %
Category - I, II, III8.25%8.68%8.65%
Category - IV (Retail)8.50%8.93%8.90%

Cheque Details-

Retail Investor  :     National Housing Bank Tax Free Bonds 2013-2014 Escrow Account 

Bankers :   

About Issue

About the Issuer

National Housing Bank (NHB), country’s Housing Finance regulator wholly own by RBI, and provide support to housing finance institutions.

The Preamble of the National Housing Bank Act, 1987 describes the basic functions of the NHB as –

“… to operate as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support to such institutions and for matters connected therewith or incidental thereto …”

NHB has been established to achieve, inter alia, the following objectives –

  1. To promote a sound, healthy, viable and cost effective housing finance system to cater to all segments of the population and to integrate the housing finance system with the overall financial system.
  2. To promote a network of dedicated housing finance institutions to adequately serve various regions and different income groups.
  3. To augment resources for the sector and channelise them for housing.
  4. To make housing credit more affordable.
  5. To regulate the activities of housing finance companies based on regulatory and supervisory authority derived under the Act.
  6. To encourage augmentation of supply of buildable land and also building materials for housing and to upgrade the housing stock in the country.
  7. To encourage public agencies to emerge as facilitators and suppliers of serviced land, for housing.

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.

 

Subscription Data

Last time First  NHB Issue subscribe 1st day.  This Issue also Fully Subscribe  First Day.

Cat ICat IICat IIICat IVTotal
Issue Size100 Cr250 Cr250 Cr400 Cr1000 Cr
11 MarSubscribe195391.81247.66481.941316.41
No of times1.951.570.991.201.32
Unsubscribe-95-141.812.34-81.94-316.41
10 Mar Subscribe195391.81243.42465.051295.28
No of times1.951.570.971.161.30
Unsubscribe-95-141.816.58-65.05-295.28
7 MarSubscribe195 Cr391.5 Cr235.07 Cr430.341252.00 Cr
No of times1.951.560.941.081.25 times
Unsubscribe (- 95.00) (- 141.50) 14.9330.34 (- 252.00)

Allotment/Listing

National Housing Bank Basis of Allotment

Allotment Details – Approximate allotment date 16 to 18 Mar & Listing date before 21 Mar 2014

Tax Free BondNHB Tax Free Bond - Tranche 2
Issue Open7 Mar 2014
Issue Close 18 Mar 2014
Issue RegistrarKarvy Computershare
Listing ExchangeNSE
Allotment Date24 Mar 2014
Listing Date26 Mar 2014
Interest Payment Date24 Mar Every Year
Face Value5000
Circular Ref. NoNSE - 259/2014
Series1 A2 A3 A1 B2 B3 B
Coupon8.25%8.68%8.65%8.50%8.93%8.90%
Period10 yr15 yr20 yr10 yr15 yr20 yr
ISIN NoINE 557F07140INE 557F07157INE 557F07165INE 557F07173INE 557F07181INE 557F07199
NSE Script ------
Maturity24/03/202424/03/202924/03/203424/03/202424/03/202924/03/2034
Maturity Amt500050005000500050005000

Call  for Investment : Rajendra  – 7719917444

Mail ID  : rajendra@puneinvest.com

Call  for Investment : Rajendra  – 7719917444

Mail ID  : rajendra@puneinvest.com

 Mumbai Pune, Satara, Kolhapur, Ahmednagar Collection facility available