Bonds

    Shriram Transport Finance Company (STFC) has opened its public issue of NCDs on 7-Oct-2013 & it closes on 21-Oct-2013 offering 6 investment options with yield upto 11.75%.  (Closed early on 14-Oct-2013)   This is the second NCD issue of this financial year from STFC, as the company raised Rs. 750 crore from its first issue in July 2013.   Type of Instruments – Secured Redeemable NCDs Size of Issue - Rs 250 crore through this issue, with an option to retain oversubscription upto Rs 250 crore, aggregating to a total of upto Rs 500 crore. Listing – Proposed to be listed on NSE & BSE Credit Rating - AA/stable by CRISIL and AA+ by CARE   Investment options – Annually / Cumulative Interest for 36 months, 60 months , 84 months About Company STFC is one of the largest asset financin...

Review of -  IIFCL Tax Free Bonds - Tranche III - February 2014 India Infrastructure Finance Company proposes to raise upto Rs 500 crore with an option to retain over subscription upto Rs 2,000 crore aggregating to Rs 2,500 crore through tax free bonds issue of secured redeemable non-convertible debentures.  (Tranche I) The tax free bonds issue would open from 03-Oct-2013  and closes on 31-Oct-2013   Indian Infrastructure Finance Co Ltd  (IIFCL)  Tax Free Bonds - Tranche I Details Series I Series II Series III Tenor 10 Years 15 years 20 years Interest Paid Annual Annual Annual Coupon Rate 8.26% 8.63% 8.75% Effective Pre-Tax Yield (30% tax slab) 11.95% 12.49% 12.66% Effective Pre-Tax Yield (20% tax slab) 10.40% 10.87% 11.02% Effective Pre-Tax Yield (10% tax ...

Housing and Urban Development Corporation (Hudco) is targeting to raise up to Rs 4810 crore through the second tranche of its public issue of tax-free bonds.The Finance Ministry has allowed Hudco to raise Rs. 5,000 crore through bonds during 2013-2014, of which Rs. 191 crore has been raised last month through private placement to institutional investors. The tax free bonds issue would open from 17-Sep-2013 and close on 14-Oct-2013 The issue size is Rs 750 crore with an option to retain oversubscription up to Rs 4810 crore CARE has given credit rating of 'CARE AA+' while IRRPL has given 'IND AA+ HUDCO Tax Free Bonds  Details Series I Series II Series III Tenor 10 Years 15 years 20 years Interest Paid Annual Annual Annual Coupon Rate 8.39% 8.76% 8.74% Effective Yield ...

India Infoline is raising Rs 1050 crores through issue of debentures offering 12% for 3 & 5 years tenure. Issue open & Close :  17th Sep to 4 Oct 2013 Type of Instruments – Secured & UnSecured Redeemable NCDs Size of Issue - Rs 525 crore through this issue, with an option to retain oversubscription upto Rs 525 crore, aggregating to a total of upto Rs 1050 crore. Listing – Proposed to be listed on BSE / NSE Credit Rating – CARE AA by CARE  & BWR AA by Brickwork Investment options – Monthly / Annually / Interest for 3 years & 5 years About Company IIFL is a subsidiary of India Infoline Limited (“IIFL”), a diversified financial services company. It is a non-deposit taking NBFC focusing on Mortgage Loans, Commercial Vehicle Finance, Gold Loan, Capital Market Finance and H...

SREI Infrrastructure Finance has opened its public issue of NCDs on 26 Aug 2013 and it closes on 17-Sep-2013 Type of Instruments – Secured Redeemable NCDs Size of Issue - Rs 200 crores Listing – Proposed to be listed on BSE Credit Rating - AA-/negative by CARE  and AA by BRICKWORK Investment option – Monthly / Annually / Cumulative Interest for 3 yrs, 5 yrs & 6 years About Company SREI is a Public Financial Institution (PFI). The company provides financial services to its customers engaged in infrastructure development and construction, with particular focus on power, road, telecom, port, oil and gas and special economic zone (SEZ) sectors in India with a medium to long term perspective. Total income on a standalone basis for the period ended March 31, 2013 and March 31, 2012 stood a...

Muthoot Finance has opened its public issue of NCDs on 2-Sep-2013 & it closes on 16-Sep-2013 offering 11 investment options with yield upto 12.55% Type of Instruments – Secured & UnSecured Redeemable NCDs Size of Issue - Rs 150 crore through this issue, with an option to retain oversubscription upto Rs 150 crore, aggregating to a total of upto Rs 300 crore. Listing – Proposed to be listed on BSE Credit Rating - AA-/negative by CRISIL and AA-/negative by ICRA . Investment options – Monthly / Annually / Cumulative Interest for 24 months, 36 months, 60 months , 72 months About Company Muthoot Finance is the largest gold financing company in India in terms of loan portfolio. The company provides personal and business loans secured by gold jewellery, or gold loans, primarily to indivi...

State-run Rural Electrification Corp (REC) plans to raise Rs. 3,500 crore from the market which is inclusive of the green-shoe option of Rs. 2,500 crore. The issue is open on 30-Aug-2013  &  expected to be oversubscribed and will perhaps end before its schedule closing date of 23 September, 2013. Issue Open on 30-Aug-2013 Issue Closes on 23-Sep-2013 (First-come-first-serve) CRISIL, CARE, India Ratings and ICRA have given the high 'AAA' rating to the bonds.   What is the interest rates offered on these REC tax free Bonds? Options Series 1 Series 2 Series 3 Tenure 10 years 15 years 20 years Coupon rates (retail individual investors) 8.26% 8.71% 8.62% Effective yield - 30.9% tax bracket 11.95% 12.60% 12.47% Effective yield - 20.6% tax bracket 10.40% 10.97% 10.86...

Shriram Transport Finance Company (STFC) has come out with public issue of secured non convertible debentures (NCDs) of face value of Rs 1,000 each, aggregating to a total of up to Rs 750 crore with yield upto 11.15% About the Company STFC is Flagship Company of "SHRIRAM" group which has significant presence in financial services & non-financial services business. STFC was incorporated in the year 1979 and is registered as a Deposit taking NBFC with Reserve Bank of India under section 45IA of the Reserve Bank of India Act ,1934. Shriram Transport Finance Company's primary focus is on financing pre-owned commercial vehicles. In addition, the company also provides finance for new commercial vehicles, passenger commercial vehicles, multi-utility vehicles, three wheelers and tractors. In ...

In recent news, you must have heard about government companies like NTPC, Oil India, NMDC etc raising money via Offer for Sale (OFS). In this post, I have tried to explain the details regarding OFS, its process mechanism, how it is different from traditional IPO / FPO route and whether it is beneficial to retail investors. What is OFS? OFS stands for Offer for Sale & it is similar to FPO (Follow-on Public offer). It provides an exchange based bidding platform to promoters to sell/dilute their holdings in listed companies in a transparent manner. The Securities and Exchange Board of India (SEBI) by a circular CIR/MRD/DP/18/2012 dated 18 July 2012, has permitted the Stock Exchanges to provide a separate window, i.e. apart from the existing trading system for the normal market segment, t...

In this week, there is wave of seconf tranche of Tax free bonds. PFC, HUDCO, REC, IRFC are launching second round (tranche) of tax free bonds, Power Finance Corporation (PFC) has come out with Tranche II of the tax free bonds after having raised Rs 700 crore in Tranche I in Dec 2012. About the Company PFC is engaged in financing and promotion of power generation, transmission and distribution including renewable energy projects throughout the country. State electricity boards are the primary borrowers. A lot has been talked about the bad health of the SEBs. However, PFC being a government owned organisation, investors may not be too concerned about the financial health of the company even if the default from the SEBs continues. PFC posted a net profit of Rs 1,117 crore for the third quart...