WITH THE rush towards annual investment declaration for salaried employees round the corner, two infrastructure finance companies are looking to woo the retail investors, especially salaried employees, by launching their second tranche of tax-saving, longterm infrastructure bonds over the next one month.
While IDFC is looking to raise around Rs 4,500 crore at an interest rate of 8.7 per cent per annum, L&T Infrastructure Finance on Monday said it would look to mop up Rs 300 crore at a similar interest rate with an option to retain an oversubscription of up to Rs 1,100 crore.
IDFC is likely to announce its tax-savings, long-term infrastructure bonds in the next few days and rate of interest will be similar to what L&T Infra bonds are offering.
In its first tranche last month, L&T Infrastructure Finance had raised Rs 530 crore, while IDFC raised over Rs 500 crore at an interest rate of 9 per cent.
Compared with the first tranche, rate of interest rate is slightly lower in the second tranche, which is an indication that interest rates are peaking out.
The bonds will be open for subscription on January 10 and close on February 11, and are proposed to be listed on Bombay Stock Exchange.
The funds raised through the issue will be used towards infrastructure financing as infrastructure is a growing area, and see no problem in the next 5-10 years for good infrastructure projects.
Despite a slightly lower interest rate offering, yields look very good and would range around 11-18 per cent over 10 year period.
The second tranche bonds offer three redemption opportunities for bond holders. In the first option, bond holders can exit at the end of five years, the second at the end of seven years and third after 10 years at the time of redemption, the company said in a media release.
Salaried employees opting for these bonds will get the benefit under section 80CCF of the Income Tax Act. Any applicant applying for these bonds not over Rs 20,000 per annum, the aforesaid tax benefit shall be available only to the extent of Rs 20,000 per annum, the release said.
---------------------------------------------
Application form for Tax Saving Long Term Infrastructure Bond
Current open Long Term Infra Bond Application form
Submit filled up application Collection canter near you
---------------------------------------------
Invest Tax Saving Mutual Funds Online
Download Tax Saving Mutual Fund Application Forms from all AMCs
Download Tax Saving Mutual Fund Applications
No comments:
Post a Comment