HUDCO Tax Free Bond Issue- Tranche 1 -7.64% Jan 2016
Housing 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
[wptabs style=”smoothness” mode=”horizontal”] [wptabs style=”wpui-blue” mode=”horizontal” background=”false”] [wptabtitle] Product Note[/wptabtitle] [wptabcontent]Issue Highlight –Tranche 1
|Issuer||HUDCO Tax Free Bond - Tranche I|
|Type of Instrument||Secured, Redeemable, NCD|
|Issue Open||27 Jan 2016|
|Issue Close||10 Feb 2016 ***|
|Issue Size||500 Cr with an option to retain oversubscription upto 1711.50 Cr|
|Face Value||Rs. 1,000|
|Min. Application Size||5 Bonds (Rs.5000) & multiply of 1 Bond thereafter|
|Mode of Allotment||D'mat & Physical Form|
|Interest on Application Money||5%|
|Security Cover||At least 100% of the outstanding Bonds at any Point of time|
Issue Structure – Interest Rate
|10 Years||15 Years|
|For Category I,II, III|
|Coupon Rate %||7.02%||7.27%|
|Category IV ( Retails)|
|Coupon Rate %||7.39%||7.64%|
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)
[/wptabcontent] [wptabtitle] About Issue[/wptabtitle] [wptabcontent]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.
Allotment Listing Details Hudco Tax Free Bond Tranche chart with ISIN No BSE/NSE Code
Application Form & Investment Call : Rajendra 771991 7444