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
| 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 (30% tax slab) | 12.14% | 12.68% | 12.65% |
| Effective Yield (20% tax slab) | 10.57% | 11.03% | 11.01% |
| Effective Yield (10% tax slab) | 9.35% | 9.77% | 9.74% |
| Minimum Application | Rs 5000 | ||
| Maximum Application | Rs 10 lacs ( Retail) | ||
| Issue Opens on | 17-Sep-13 | ||
| Issue Closes on | 14-Oct-13 | ||
HUDCO is a public sector company, under the Ministry of Housing & Urban Poverty Alleviation (MoHUPA). It has been a key partner with the government in building assets for the nation.
During 2012-2013,
- Total Revenue – Rs 2923 crore
- Net profit was Rs 700 crore
- Sanctioned projects worth Rs. 23,000 crore and
- Disbursed Rs. 6,000 crore
The funds would be utilised to finance the government’s housing and urban infrastructure projects
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 HUDCO Website.
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Allotment Status of HUDCO Tax free Bonds
Youc an check the Allotment status of your HUDCO Tax free Bonds application at link below by entering application number / PAN number: