IIFCL Tax free bonds for 2012-2013 – Are these best investments ?
India Infrastructure Finance Company Ltd (IIFCL) is proposing to issue tax free bonds which are in the nature of secured, redeemable, non convertible bonds for the year 2012-13. The proposed issue is for Rs 1,500 crores with an option to retain oversubscription upto Rs 9,215 Crores.
IIFCL is the government enterprise which is established in 2006 with an objective of providing finance solutions for world class infrastructure in India.
Details about IIFCL tax free bonds issue
- Date of open: 23-Dec-2012
- Date of closure: 11-Jan-2013
- Face value : Rs 1,000 per bond
- Min subscription: 5 bonds i.e. Rs 5,000 and multiples of 1 bond thereon
- Max subscription: Rs 10 lacs
- There are 3 series of tax free bonds. Series-1 for 10 years; Series-2 for 15 years; Series-3 for 20 years.
- Interest rates are as follows:
Tenure Interest-Individuals Interest for Banks/HNI’s
10 years 7.69 7.19
15 years 7.86 7.36
20 years 7.90 7.40
- Crisil and ICRA have rated this issue as AAA which states as high safety of investment.
- No TDS would be deducted on the interest which is paid annually
- You can purchase them in Demat form or in physical form
- It would be listed in NSE/BSE which makes it easy from liquidity point of view.
Recommendation: These IIFCL bonds provide tax free interest to the investors. It would be best investments for anyone who is in the highest tax bracket, as they get tax free fixed income in long term. Since interest rates are falling now, investing in such tax free bonds provide good fixed income over long term for every investor.
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