National Housing Bank (NHB) is targeting to raise up to Rs 1,000 crore with an option to retain over-subscription up to Rs.2,100 crore.
The issue is open from 30-Dec-2013 to 31-Jan-2014 On 1st day of issue itself, it is oversubscribed by 2.08 times the issue size
| National Housing Bank (NHB) Tax Free Bonds | |||
| Details | Series I | Series II | Series III |
| Tenor | 10 Years | 15 years | 20 years |
| Interest Paid | Annual | Annual | Annual |
| Coupon Rate | 8.51% | 8.88% | 9.01% |
| Effective Pre-Tax Yield (30% tax slab) |
12.32% | 12.85% | 13.04% |
| Effective Pre-Tax Yield (20% tax slab) |
10.72% | 11.18% | 11.35% |
| Effective Pre-Tax Yield (10% tax slab) |
9.49% | 9.90% | 10.04% |
| Minimum Application | Rs 5000 | ||
| Maximum Application | Rs 10 lacs ( Retail) | ||
| Issue Opens on | 30-Dec-13 | ||
| Issue Closes on | 31-Jan-14 | ||
About the Company
NHB is wholly owned subsidiary of Reserve Bank of India (RBI).
The objective of the issue is to mobilize long-term resources to provide financial assistance for affordable housing. The funds will also help NHB to implement some important schemes and serve niche markets such as housing finance for women, long-term fixed-rate products and low-income housing schemes
Other Important Points
- Investors can choose to apply in demat as well as physical form. Demat account is not mandatory. However, if you want to sell/trade these bonds before maturity, it is mandatory to have a demat account. You can subscribe to them in physical form as well and keep them till maturity.
- Interest will get credited to your linked bank account through ECS. The interest payment date is not yet fixed but the first due interest will be paid after 1 year from the deemed date of allotment.
- The allotment will be made on a “first-come-first-served” basis. Allotment will be done within 12 working days from the closing date of the issue.
- Bonds will be listed on NSE & BSE
- NRI Investment: Non-US NRIs can also invest in this issue. They can apply for these bonds both on repatriation basis as well as non-repatriation basis.
Download the Form
You can download the Form from NHB Website.
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Allotment Status of NHB Tax free Bonds
Youc an check the Allotment status of your NHB Tax free Bonds application at link below by entering application number / PAN number: