IDFC Infrastructure Bonds Tranche 2, Tax Benefit u/s 80CCF
For More Details visit on www.lifins.in
or
call on 9822403407
- Lifins Financial, Pune, Maharashtra, India.
Company profile
About the company :
IDFC has been sponsored by the Government of India as a key institution to facilitate infrastructure development in the country. The focus areas for IDFC continue to be the Energy, Telecom, Industrial & Commercial Transportation sectors, although the company is also targeting the Healthcare, Education and urban Infrastructure sectors. IDFC also works with state and national level entities to formulate policies aimed at expediting infrastructure development in the country. Recently, IDFC has been classified as an infrastructure NBFC.
IDFC is a leading knowledge-driven financial services company in India and plays a central role in advancing infrastructure development in the country. IDFC is a one-stop-shop for all products and services across the infrastructure value chain. Established in 1997 as a private sector enterprise by a consortium of public and private investors, the Company listed its Equity Shares in India pursuant to an initial public offering in August 2005.
Financial Performance:
IDFC has been Diversifying from infrastructure loan lending business to other sectors. These new sectors are expected to be the growth drivers in the future. The company has continued its strong growth during the FY 2009-10, which is reflected in its improved financial performance in comparison with FY 2008-09
Balance sheet size has increased from Rs 31,982 Crs to Rs 46,423 Crs.
Non-performing Advances (NPAs) were 0.17% of total loan assets.
Net worth has increased from Rs. 6176 Crs to Rs. 7010 Crs.
Profit Before Tax increased by 137% from Rs 965 Crs to Rs 1317 Crs
Profit After Tax grew by 138% from Rs 736 Crs to Rs 1013 Crs.
Salient features of the bond issue (Tranche II)
l Second Tranche of public issue of bonds by an infrastructure finance company under Sec 80 CCF
l Credit rating agency ICRA has rated the Bonds under this offer as “LAAA” and FITCH has rated the bonds “AAA” with stable outlook, indicating highest safety.
l These bonds will be issued only to Resident Indian Individuals (Major) and HUF.
l There are 2 investment options, suiting the needs of different categories of investors.
l No TDS shall be deducted from interest on Tranche 2 Bonds, if such interest does not exceed Rs 2,500 in a financial year.
l The bonds will be listed on NSE & BSE and can be traded after the 5 year lock – in period.
l Investors can mortgage or pledge these bonds to avail loans after the lock-in period.
l Under Section 80 CCF of the I.T. Act, an investor in such infrastructure bonds will be entitled to tax deduction of investments of up to Rs 20,000. The deduction is over and above the Rs 1,00,000 deduction available under section 80C, 80CCC & 80CCD read with section 80CCE.
Issue Structure:
l Maturity: The Bonds, with a maturity of 10 years, will be issued in 2 series.
l Face Value: Each Bond has face value of Rs 5,000 each.
l Minimum application: Rs 10,000 or 2 bonds. The bonds can be of the same series or 2 bonds
across different series.
l Lock in: 5 years from the date of allotment.
l Buyback facility: Available for both the Series 1 & 2.
l Bond Issue Profile: (Tranche II)
Issue Opens on: 17th Jan11. Issue Closes on:4th Feb 11.
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Series
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I
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II
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Interest Payment
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Annual
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CuMULATIVE
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Minimum Application
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2 bonds and in multiples of one bond thereafter
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Face Value (Rs. / Bond)
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Rs.5,000/-
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Rs.5,000/-
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Interest Rate (%) p.a.
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8%
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N/A
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Yield on Maturity (%) p.a.
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8.00%
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8.0% compounded annually
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Maturity
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10 years
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10 years
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Redemption Amount per bond
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Rs 5,000
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Rs 10,800
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Buy back Facility
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YES
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YES
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Buyback Date (from allotment)
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5 years
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5 years
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Buyback Intimation Period
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The period beginning not before 9 months prior to the Buyback Date and ending not later than 6 months prior to the Buyback Date
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Buy back Amount (Rs)
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Rs 5,000 per bond
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Rs 7,350 per bond
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Buy back Yield (%)
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8.00%
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8.0% compounded annually
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For More Details visit on www.lifins.in
or
call on 9822403407
- Lifins Financial, Pune, Maharashtra, India.
REC Tax Saving Long Term Infrastructure Bonds–Tax Benefit u/s 80CCF
Issue closes: 28th March 2011.
For More Details visit on www.lifins.in
or
call on 9822403407
- Lifins Financial, Pune, Maharashtra, India.
Click below link to download application form.
https://www.lifins.in/images/bond/rec.pdf
About the company :
Rural Electrification Corporation Limited (REC), a NAVRATNA Central Public Sector Enterprise under Ministry of Power, was incorporated on July 25, 1969 under the Companies Act 1956. REC a listed Public Sector Enterprise Government of India with a net worth of Rs. 11,080 Crore as on 31.03.10. Its main objective is to finance and promote rural electrification projects all over the country. It provides financial assistance to State Electricity Boards, State Government Departments and Rural Electric Cooperatives for rural electrification projects as are sponsored by them.
REC provides loan assistance to SEBs/State Power Utilities for investments in rural electrification schemes through its Corporate Office located at New Delhi and 17 field units (Project Offices), which are located in most of the States.
Salient features of the issue:
❖Credit rating: ‘AAA /Stable’ by CRISIL, ‘CARE AAA’ by CARE ,’LAAA’ by ICRA, ‘AAA(IND) by Fitch
❖These bonds will be issued to Resident Indian Individuals (Major) and HUF.
❖ There are 2 investment options.
❖The bonds will be listed on NSE & BSE.
❖ Issuance/Trading - In Dematerialized and Physical Form
❖ Issue Structure:❖
l ❖Maturity: The Bonds, with a maturity of 10 years, will be issued in 2 option.
l ❖Face Value: Each Bond has face value of Rs 5,000 each.
l ❖Minimum application: Rs 10,000 or 2 bonds.
l ❖Lock in: 5 years from the date of allotment in Option 1.
❖Buyback facility: Available in the Option 1.
Issue Opens on: 12th Jan 2011.
Issue Closes on: 28th March 2011.
BUYBACK PROCEDURE: The investors, who opt and are allotted bonds with buyback facility and wish to exit through this facility after 5/6/7/8/9 years, shall have to give his consent in the application form to the company. However, any bondholder(s) desires to change his option, will have to intimate the Registrar between January 1 to January 31, starting from year 2016 till 2020.
•Benefits to investors :
• Bonds offer an additional window of tax deduction of investments of up to Rs 20,000 which result in attractive yield to investors. Under Section 80 CCF of the I.T. Act, an investor in such infrastructure bonds will be entitled to tax deduction of investments of up to Rs 20,000. The deduction is over and above the Rs 1,00,000 deduction available under section 80C, 80CCC & 80CCD read with section 80CCE.
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Option
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I
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II
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Buyback Option after 5 Years
(Annual Coupon)
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No Buyback (Redemption After 10Years) (Annual Coupon)
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Minimum Application
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2 bonds and in multiples of one bond thereafter
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Face Value (Rs. / Bond)
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Rs.5,000/-
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Rs.5,000/-
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Interest Rate (%) p.a.
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8%
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8.10%
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Interest Payment
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Yearly
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Yearly
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Interest Payment Date
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31st March Every Year
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31st March Every Year
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Maturity Date
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31st March, 2021
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31st March, 2021
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Buy Back Option
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YES
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No
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Buy Back after
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5/6/7/8/9 Years
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No.
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For More Details visit on www.lifins.in
or
call on 9822403407
- Lifins Financial, Pune, Maharashtra, India.
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