HUDCO

By Research Desk
about 8 years ago
HUDCO

Housing And Urban Development Corporation Ltd. (HUDCO) has entered the capital market on 27th January 2012, with issue of Tax Free Bonds, of face value of Rs. 1,000 each, in the nature of Secured, Reedamable, Non Convertible Debentures, for Rs. 2,000 crores, with an option to retain an oversubscription upto the Shelf limit of Rs. 4,685 crores. The issue is closing on 10th February, 2012.

The Bonds are having benefits under section 10(15)(iv)(h) of Income Tax Act and other terms of the issue are as under:-

 

Options

“Series of Bonds”

Tranche - I Series 1 Bond

Tranche - I Series 2 Bond

Tenor

10 years.

15 years.

Redemption Date

10 years from the Deemed Date of Allotment.

15 years from the Deemed Date of Allotment.

Redemption Amount(Rs./ Bond)

Repayment of Face Value and any interest that may have accrued on the Redemption Date.

Repayment of Face Value and any interest that may have accrued on the Redemption Date.

Frequency of Interest Payment

Annual

Annual

Minimum Application size

Rs. 10,000 (10 Bonds)

Rs. 10,000 (10 Bonds)

In multiple of

Rs. 1,000 (One Bond)

Rs. 1,000 (One Bond)

Face Value (Rs./ Bond)

Rs. 1,000

Rs. 1,000

Issue Price (Rs./ Bond)

Rs. 1,000

Rs. 1,000

Modes of interest payment

Through various available modes.**

Through various available modes.**

Coupon Rate (%) p.a.

8.10% p.a.

8.20% p.a.

Options

Additional Coupon Rate*** for Category III Investors: 0.12% p.a.

Additional Coupon Rate*** for Category III Investors: 0.15% p.a.

Aggregate Coupon Rate for Category III Investors: 8.22% p.a.

Aggregate Coupon Rate for Category III Investors: 8.35% p.a.

Annualised Yield

For Category I Investors: 8.10%

For Category I Investors: 8.20%

For Category II Investors: 8.10%

For Category II Investors: 8.20%

For Category III Investors: 8.22%

For Category III Investors: 8.35%

Category III Investors include Resident Indian Individuals and HUF, applying for an amount aggregating to up to and including Rs. 5 lakhs, across all series in this tranche.

Bonds will be listed on NSE and BSE.

It is recommended to apply for 15 years, in Retail category (Category III) with application of less than Rs. 5 lakhs.

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