| India Infrastructure Finance Co Ltd ( IIFCL) today said its ₹ 9,215- crore tax- free bond issue would open on Wednesday. The funds raised would help the state- run financing institution lend long term to infrastructure projects in the country. "IIFCL is planning to raise ₹ 1,500 crore with a green shoe option up to the shelf limit of ₹ 9,215 crore on a first- comefirstserve basis through public issue of tax- free bonds in 2012- 13," Chairman and Managing Director S K Goel told reporters today. The issue will remain open from December 26 to January 11. It will be available at the coupon rates of 7.69 per cent an annum ( 10 years), 7.86 per cent (15 years) and 7.9 per cent ( 20 years) to retail individual investors. Qualified institutional buyers, companies and high net- worth individuals would get the bonds at the rate of 7.19 per cent, 7.36 per cent and 7.4 per cent, respectively. Asked whether IIFCL would be able to attract investors at these rates, especially when taxfree bonds of other state- run companies such as Power Finance Corp ( PFC) and Rural Electrification Corp ( REC) have found few takers, Goel said the coupon rate on its bond last year was even lower but it still got over- subscribed. IIFCL's risk is well distributed across various sectors, unlike REC and PFC, and its bonds are rated AAA, which meant minimum risk for investors, he added. In Budget 2012- 13, the government had allowed IIFCL to raise ₹ 10,000 crore through taxfree bonds. IIFCL has already raised ₹ 785 crore through private placement. In the case of tax- free bonds, the interest earned on the invested amount is exempted from income tax. These are different from tax- saving bonds in which the invested amount is allowed for deduction from the total taxable income. Goel said since the government had discontinued tax- saving bonds from this financial year, investors would come to IIFCL's tax- free bond. The issue is coming at a time of the year when people start making investments to save taxes. The bonds with no- lock in period would be listed on the BSE. Asked whether IIFCL had requested the government for allowing infrastructure financing institutions to raise funds through tax- saving bonds, he said: " It's always our wish- list to get access to cheaper sources of funds. It's up to the government to allow or not." IIFCL has set a target of ₹ 30,000 crore loan disbursement for this financial year. It has already disbursed around ₹ 26,000 crore. Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
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The Make in India program was launched by Prime Minister Naredra Modi in September 2014 as part of a wider set of nation-building initiatives. It was devised to transform India into a global design and manufacturing hub. The primary motive of the campaign is to encourage multinational as well domestic companies to manufacture their products in India. This would create more job opportunities, bring high-quality standards and attract capital along with technological investment to bring more foreign direct investment (FDI) in the country. Why India as the next manufacturing destination? The rising demand in India along with the multinational's desire to diversify their production to include low-cost plants in countries other than China, can help India's manufacturing sector to grow and create millions of jobs. In the words of our Honourable Prime Minister- Mr. Narendra Modi, India offers the 3 'Ds' for business to thrive— democracy,...
