HOME         WEBSITE         SUBSCRIBE           E-GREETINGS   
                               

Tuesday, December 10, 2013

HUDCO and NTPC float tax free bonds

Tax free bonds of HUDCO and NTPC are offering yields up to 9.01% and 8.91% per annum respectively to retail investors for the tenure of 20 years while IIFL Housing Finance NCD offers 12.15% for 5 years for all categories of investors. With the tax season approaching, companies like Housing and Urban Development Corporation (HUDCO) and National Thermal Power Corporation (NTPC) have recently come out with their tax free bonds. Other firms like Indian Railway are likely to hit the bond market later this month as it had filed a draft offer document with SEBI to issue its tax free NCD.

Also, India Infoline Housing Finance Limited (IIFL Housing Finance) has floated secured redeemable non-convertible bonds (NCD). While IIFL Housing Finance issue is offering an effective pre-tax yield up to 12.15% per annum to retail investors for 5 years tenure, HUDCO and NTPC have announced attractive tax free coupon rate of 9.01% and 8.91% per annum respectively to individual investors for the tenure of 20 years. The issues of HUDCO and NTPC are currently open and will close on January 10, 2014 and December 16, 2013 respectively while IIFL Housing Finance NCDs will open on December 12, 2013 and close on December 20. However, NTPC’s tax free issue has been oversubscribed 3.3 times.

Who can apply:
 Resident individuals, HUFs, partnership firms, companies and body corporates, banks, public financial institutions, national investment funds, mutual funds, venture capital, insurance companies, commercial banks, co-operative banks, public/private charitable trusts, industrial research organizations and other eligible categories.

Application size:
All issues have a face value of Rs 1000 but minimum application size varies as HUDCO and NTPC have a minimum application size of Rs 5,000 for five bonds while IIFL Housing Finance has decided to keep it at Rs 10,000. HUDCO seeks to collect Rs 500 crore with an option to retain an additional 2439.20 crore if the issue gets oversubscribed. Similarly, the public issue by NTPC aims to aggregate Rs 1,000 crore and has a greenshoe option to retain another Rs 750 crore if the issue gets oversubscribed. IIFL Housing Finance also aims to collect Rs 250 crore with an option to retain another Rs 250 crore if the issue gets oversubscribed. The maximum size of issue will be Rs 500 crore. Who can sell the product: Registered stock brokers with any stock exchange along with their respective sub-brokers, banks and intermediaries selected by the issuing company.

How can an IFA register to sell the product:
An IFA has to sign the sub-broker agreement with a stock broker to be eligible to sell the bonds. Trustee: For HUDCO - SBICAP Trust Company, NTPC - IL&FS Trust Company and IIFL housing finance - IDBI Trusteeship Services

Registrar:
HUDCO, NTPC - Karvy Computershare and IIFL Housing Finance - Link Intime India Listing:

HUDCO’s tax free bond will be listed on BSE while NTPC’s and IIFL’s Housing Finance issues will be listed on both BSE and NSE. Depositories:

NSDL and CDSL Lead Managers:
For HUDCO – Axis Capital, Edelweiss Financial Services, HDFC Bank, RR Investors Capital and Karvy Investor Services. NTPC - AK Capital Services, Axis Capital, ICICI Securities, Kotak Mahindra and SBI Capital Market. IIFL Housing Finance - Axis Capital, IIFL, Trust Investment Advisors, Edelweiss Financial Services, RR Investors Capital Services, Karvy Investor Services and SMC Capital.

Allocation:
All three - NTPC HUDCO and IIFL Housing Finance have allocated 40% of issues to retail investors. Besides, IIFL Housing Finance has allocated 40% of NCDs for institutional category and 20% for non-institutional category. HUDCO has assigned 30% of issues for HNIs, 20% for corporates and 10% for QIB whereas NTPC has allocated 25% of NCDs for HNIs, 25% for corporates and 10% for QIB.
Posted by

Blog Archive

____________________________________________________________________________________________

Disclaimer - All investments in Mutual Funds and securities are subject to market risks and uncertainty of dividend distributions and the NAV of schemes may go up or down depending upon factors and forces affecting securities markets generally. The past performance of the schemes is not necessarily indicative of the future performance and may not necessarily provide a basis for comparison with other investments. Investors are advised to go through the respective offer documents before making any investment decisions. Prospective client(s) are advised to go through all comparable products in offer before taking any investment decisions. Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the fund will be achieved. Information gathered & material used in this document is believed to be from reliable sources. Decisions based on the information provided on this newsletter/document are for your own account and risk.


In the preparation of the material contained in this document, Varun Vaid has used information that is publicly available, including information developed in-house. Some of the material used in the document may have been obtained from members/persons other than the Varun Vaid and which may have been made available to Varun Vaid. Information gathered & material used in this document is believed to be from reliable sources. Varun Vaid however does not warrant the accuracy, reasonableness and/or completeness of any information. For data reference to any third party in this material no such party will assume any liability for the same. Varun Vaid does not in any way through this material solicit any offer for purchase, sale or any financial transaction/commodities/products of any financial instrument dealt in this material. All recipients of this material should before dealing and or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice.


Varun Vaid, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible/are liable for any decision taken on the basis of this material. All recipients of this material should before dealing and/or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice. The investments discussed in this material may not be suitable for all investors. Any person subscribing to or investigating in any product/financial instruments should do soon the basis of and after verifying the terms attached to such product/financial instrument. Financial products and instruments are subject to market risks and yields may fluctuate depending on various factors affecting capital/debt markets. Please note that past performance of the financial products and instruments does not necessarily indicate the future prospects and performance there of. Such past performance may or may not be sustained in future. Varun Vaid, including persons involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation in the financial instruments/products/commodities discussed here in or act as advisor or lender / borrower in respect of such securities/financial instruments/products/commodities or have other potential conflict of interest with respect to any recommendation and related information and opinions. The said person may have acted upon and/or in a manner contradictory with the information contained here. No part of this material may be duplicated in whole or in part in any form and or redistributed without the prior written consent of Varun Vaid. This material is strictly confidential to the recipient and should not be reproduced or disseminated to anyone else.


Varun Vaid also does not take any responsibility for the contents of the advertisements published. Readers are advised to verify the contents on their own before acting there upon.


Published Credits goes to following sources & all the mentioned sources as footer below the published material- Bloomberg, Valueresearch Online, Capital Market, Navindia, Franklin Templeton, Kitco, SBI AMC, LIC AMC, JM Financial AMC, HDFC AMC, The Hindu, Business Line, Personal FN, Economic Times, Reuters, Outlook Money, Business Standard, Times of India etc.