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HUDCO Tax Free Bond Details

Discussion in 'IPO' started by real_buzz, Jan 26, 2016.

  1. real_buzz Moderator

    Issue Opens-- Wednesday, January 27, 2016
    Issue Closes-- Wednesday, February 10, 2016
    Issue Size--Rs. 500 crores with an option to retain oversubscription upto Rs. 1,211.50 crores aggregating to total of upto Rs. 1711.50 crores.

    Lead Manager
    Edelweiss Financial Services Ltd., Axis Capital Ltd., ICIC Securities Ltd., SBI Capital Markets Ltd. and RR Investors Capital Services Pvt. Ltd.

    Issue Price-- Rs. 1000 per bond
    Face Value-- Rs. 1000 per bond

    Min Application
    5 Bonds (Rs. 5,000) (individually or collectively, across all series of bonds) and in the multiple of one bond (Rs. 1,000) thereafter

    Nature of Bonds
    Tax-free secured redeemable and non-convertible

    Rating
    'CARE AAA' from CARE and 'IND AAA' from IRRPL

    Allotment
    First Come First Serve Basis

    Listing On
    BSE

    Issue Break up
    QIB: 20%; Corporate : 20%; HNI: 20%; Retail: 40%

    Retail Client Application Limit
    Max Rs. 10 lakhs or less

    About HUDCO
    The Company was incorporated as Housing and Urban Development Finance Corporation Private Limited on April 25, 1970 as a private limited company under the Companies Act, 1956 and was granted a certificate of incorporation by the then Registrar of Companies, Delhi. Subsequently the name of the Company was changed to its present name and a fresh certificate of incorporation dated July 9, 1974 was issued by the then Registrar of Companies, Delhi and Haryana. The Company was notified as a public financial institution under Section 4A of the Companies Act, 1956 on December 9, 1996. The President of India holds 100% of the paid up equity share capital of the Company, either directly or through nominee shareholders.
    Highlights of Tax Free Bonds
    Interest from these Bonds do not form part of total income as per provisions of Section 10(15) (iv)(h) of Income Tax Act, 1961 read along with Section 14A(1) of the Income Tax Act.
    Since the interest income on the bonds is exempt, no tax deduction at source ("TDS") is required. However interest on application money would be liable for TDS as well as would be subject to tax as per present tax laws.
    Wealth tax has been abolished w.e.f. financial year 2015-16 i.e. assessment year 2016-17.
    Objects for Issue
    The Net Issue Proceeds as raised through each of the Tranche are proposed to be utilisedto finance the projects and/activities mainly relating to housing for EWS/ LIG categories during the current year and/over the years, and for such other purposes as may be permitted by Ministry of Finance, Government of India or any other authority, from time to time.
    Terms of Series of Bonds
    Coupon Rates for Category I, II and III
    Series of Bonds*
    Tranche I Series IA
    Tranche I Series IIA
    Coupon Rate (%) per annum
    7.02%
    7.39%
    Annualized Yield (%) per annum
    7.02%
    7.39%
    Coupon Rates for Category IV
    Series of Bonds*
    Tranche I Series IB
    Tranche I Series IIB
    Coupon Rate (%) per annum
    7.27%
    7.64%
    Annualized Yield (%) per annum
    7.27%
    7.64%
    Options
    Series IB
    Series IIB
    Tenure of Bonds
    10 years
    15 years
    Maturity/Redemption Date
    10 years from deemed date of allotment

    15 years from deemed date of allotment

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