{"id":4071,"date":"2013-03-10T08:15:19","date_gmt":"2013-03-10T02:45:19","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=4071"},"modified":"2014-06-20T08:54:06","modified_gmt":"2014-06-20T03:24:06","slug":"iifcl-tax-free-bonds-tranche-ii-march-2013-review","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/iifcl-tax-free-bonds-tranche-ii-march-2013-review\/","title":{"rendered":"IIFCL Tax Free Bonds (Tranche II) &#8211; March 2013 &#8211; Review"},"content":{"rendered":"<p style=\"text-align: justify;\">There a lot of companies trying to raise funds through the Tax free bonds route before the Financial Year ends. The latest to join is India Infrastructure Finance Company (IIFCL), another Government-controlled company, issuing tranche 2 of tax-free bonds between February 25 and March 15.<\/p>\n<h3 style=\"text-align: justify;\">IIFCL Tax Free Bonds &#8211; Significant Points:<\/h3>\n<ul style=\"text-align: justify;\">\n<li><strong>Offer Period:<\/strong>\u00a0February 25, 2013 \u2013 March 15, 2013 (the offer can be pre-closed on full subscription)<\/li>\n<li><strong>Annual Interest Rates for Retail Investors:<\/strong>\n<ul>\n<li>7.36% for 10 Years<\/li>\n<li>7.52% for 15 Years<\/li>\n<li>7.58% for 20 Years<\/li>\n<li>The interest rates are 0.5% less for HNIs, QIBs and corporate subscribers.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Price of each bond:<\/strong>\u00a0Rs 1,000<\/li>\n<li><strong>Minimum Investment:<\/strong>\u00a05 Bonds (Rs 5,000)<\/li>\n<li><strong>Max Investment Limit for Retail Investor:<\/strong>\u00a0Rs 10 Lakhs<\/li>\n<li><strong>Reservation:<\/strong>\u00a040% reserved for retail investors<\/li>\n<li><strong>Allotment:<\/strong> First Come First Serve<\/li>\n<li><strong>Listing:<\/strong> Bonds would be listed on BSE and will entail capital gains tax on exit through secondary market<\/li>\n<li><strong>Step Down Clause:<\/strong>\u00a0The bonds will come with a step-down clause, according to which only the original allottee, who has subscribed under the retail category will receive the coupon of 7.36% &#8211; 7.58% depending on tenure. On sale or transfer, the benefit is lost and rates reduce to that applicable for other investors (6.86 per cent for 10-year bonds, 7.02 per cent for 15-year bonds and 7.08 per cent for 20-year bonds).<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\">Why you should invest?<\/h3>\n<ol style=\"text-align: justify;\">\n<li>IIFCL is offering bonds with highest tenure of 20 Years with 7.58% interest rate. If you want to lock your investment for such a long period debt instrument, its the only option.<\/li>\n<li>The bonds are secured to the full extent and have the highest credit rating (AAA)<\/li>\n<li>The interest rates on future tax free bonds might be lower as RBI might moderate its policy rates<\/li>\n<\/ol>\n<h3 style=\"text-align: justify;\">Why you should not invest?<\/h3>\n<ol style=\"text-align: justify;\">\n<li>The interest rate offered by PPF is 8.8% tax free. You should exhaust your maximum PPF limit of Rs. 1 Lakh before you look for tax free bonds<\/li>\n<li>If you are not in higher tax slab of 20% or more<\/li>\n<\/ol>\n<h3 style=\"text-align: justify;\">Who should apply?<\/h3>\n<p style=\"text-align: justify;\">As for most tax free bonds,\u00a0<strong>these are good for investors in high income tax bracket of 20% and 30%.<\/strong>\u00a0As for most tax free bonds, these are good for investors in high income tax bracket of 20% and 30%. Today the maximum rate offered by bank fixed deposit is 9%. This translates into a post tax return of 7.2% for 20% tax slab and 6.2% for 30% tax slab. This is lower than IIFCL\u2019s 15-year and 20-year bonds.<\/p>\n<p style=\"text-align: justify;\">Along with the above, it suits investors who want regular income from interest payment and have low risk profile.<\/p>\n<p style=\"text-align: justify;\"><strong style=\"font-size: 1.17em;\">About IIFCL:<\/strong><\/p>\n<p style=\"text-align: justify;\">IIFCL is among the major financiers to various infrastructure projects in the country. As on March 2012, it had disbursed loans of Rs 22,543 crore.<\/p>\n<p style=\"text-align: justify;\">The company has been consistently profitable since its establishment in 2006, and its consolidated profit in FY-12 doubled over the previous year to Rs 678 crore. It did not have any non-performing advances in FY-12.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There a lot of companies trying to raise funds through the Tax free bonds route before the Financial Year ends. The latest to join is India Infrastructure Finance Company (IIFCL), another Government-controlled company, issuing tranche 2 of tax-free bonds between February 25 and March 15. IIFCL Tax Free Bonds &#8211; Significant Points: Offer Period:\u00a0February 25, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4912,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[31,30,340],"tags":[1594,1595,2168,1593],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/IIFCL-Tax-Free-Bonds-Tranche-II-March-2013-Review.png",575,340,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/IIFCL-Tax-Free-Bonds-Tranche-II-March-2013-Review-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/IIFCL-Tax-Free-Bonds-Tranche-II-March-2013-Review-300x177.png",300,177,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/IIFCL-Tax-Free-Bonds-Tranche-II-March-2013-Review.png",575,340,false],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/IIFCL-Tax-Free-Bonds-Tranche-II-March-2013-Review.png",575,340,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/IIFCL-Tax-Free-Bonds-Tranche-II-March-2013-Review.png",575,340,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/IIFCL-Tax-Free-Bonds-Tranche-II-March-2013-Review.png",575,340,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/IIFCL-Tax-Free-Bonds-Tranche-II-March-2013-Review.png",120,71,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"There a lot of companies trying to raise funds through the Tax free bonds route before the Financial Year ends. The latest to join is India Infrastructure Finance Company (IIFCL), another Government-controlled company, issuing tranche 2 of tax-free bonds between February 25 and March 15. IIFCL Tax Free Bonds &#8211; Significant Points: Offer Period:\u00a0February 25,&hellip;","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/4071"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=4071"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/4071\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/4912"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=4071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=4071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=4071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}