NHB Tax Free Bonds – Dec 2013 to Jan 2014 – Details

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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.

Taxation Aspects of Tax FREE Bonds

Read my Post –  Taxation Aspects of Tax free Bonds?

Merits & Demerits of Tax free Bonds

Read –  Tax free Bonds – Should you invest in these?

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:

https://mis.karvycomputershare.com/ipo/

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