Jan 12
25
HUDCO Tax Free Bonds – Download Application Form
Issue: Housing and Urban Development Corporation Ltd (HUDCO) Tax Free Bonds
Issue opens: 27 January 2012
Issue closes: 6 February 2012
Credit Rating: Fitch AA+ (ind) by FITCH & CARE AA+ by CARE.
Allotment Basis: First-come-First-serve basis.
Issue highlights
Issue size: Rs 4,684.72 cr
Face value: Rs 1,000
CLICK HERE TO DOWNLOAD Housing and Urban Development Corporation Ltd (HUDCO) Tax Free Bonds APPLICATION FORM
PROFILE
Housing and Urban Development Corporation Ltd (HUDCO) was established in 1970 as a wholly owned Government company with the objective to provide long term finance and undertake housing and urban infrastructure development programmes. HUDCO’s sustained performance and profitability earned them Mini-ratna status conferred in FY 05. HUDCO had sanctioned loans of Rs. 37,464 cr for housing and Rs. 84,906 cr for urban infrastructure on a cumulative basis up to Dec 2011.
SALIENT FEATURES OF THE BOND ISSUE
- The Bonds are issued in the form of tax-free, secured, redeemable, non-convertible bonds and the interest on the Bonds will not form part of the total income.
- In case of over-subscription; allotment shall be on first cum first serve basis upto the date falling 1 day prior to the date of oversubscription and on proportionate basis on the date of oversubscription.
- Credit rating agency CARE has rated the bonds “CARE AA+” & FITCH has rated the bonds “Fitch AA+ (ind)”. Instruments with this rating are considered to have the high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
- The bonds are fully secured by way of floating first pari passu charge on the present and future receivables of the company to the extent of amount mobilized under the issue. The security cover is 1.0 times of the outstanding Bonds at any point in time.
- The Bonds bear an attractive coupon rate; 8.10% p.a. for Tranche 1 Series 1 (bonds maturing after 10 years) and 8.20% p.a. for Tranche 1 Series 2 (bonds maturing after 15 years). (Tax free).
- HUDCO shall pay 8% p.a. for Tranche 1 Bonds as interest on the Application amount retained.
- HUDCO shall also pay 4% p.a. on refund of application amount. Such interest shall be paid along with the monies liable to be refunded.
- Issuance will be in DEMAT as well as PHYSICAL form. The bonds will be listed on both BSE and NSE; facilitating trading of these bonds.
- Investors can pledge or hypothecate these bonds to avail loans.
INVESTMENT OPTIONS
| Options |
Series I |
Series II |
| Interest Payment |
Annual |
Annual |
| Minimum Application | Rs. 10,000/- (10 Bonds) | Rs. 10,000/- (10 Bonds) |
| In Multiples of | Rs. 1,000/- (1 Bond) | Rs. 1,000/- (1 Bond) |
| Face Value of bonds |
Rs. 1000 |
Rs. 1000 |
| Coupon (%) p.a. (Post Tax) |
8.10% * |
8.20% ** |
| Tenor |
10 years |
15 years |
| Redemption Amount |
Repayment of the Face Value and any interest that may have accrued on the Redemption Date. |
|
| Nature of Indebtedness |
Floating first pari-passu charge on present and future receivables of our Company to the extent of amount mobilized under the Issue . |
|
TAX BENEFITS
1. The income by way of interest on these Bonds shall not form part of total income as per provisions under section 10 (15) (iv) (h) of I.T. Act, 1961;
2. There shall be no deduction of tax at source from the interest, which accrues to the bondholders in these bonds irrespective of the amount of the interest or the status of the investors;
3. As per provisions under section 2 (29A) of the I.T. Act, read with section 2 (42A) of the I.T. Act, a listed Bond is treated as a long term capital asset if the same is held for more than 12 months immediately preceding the date of its transfer. Under section 112 of the I.T. Act, capital gains arising on the transfer of listed Bonds shall be taxed @ 10% without indexation;
4. Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957.
>>> HUDCO TAX FREE BONDS APPLICATION FORM – DOWNLOAD HERE
