HUDCO : Tax Free Bonds Issue, Raise up to Rs. 5,000 Cr..!


Housing and Urban Development Corporation Ltd (HUDCO) will launch a public issue of tax-free bonds this month (January, 2013) to raise up to Rs. 5,000 crore for financing low-cost housing and urban infrastructure projects.
Retail Investors..!
For retail investors, the bond issue carries a coupon rate of 8.01% per annum for 15 years maturity period and 7.84% for 10 years. An investment up to Rs. 10 lakh would qualify under retail category.
Mr. A.K. Kaushik, Senior Executive Director (Finance), HUDCO said PTI, " We are coming out with a public issue of tax - free bonds to raise up to Rs 5,000 crore. We are offering  0.15% more than other issuers who have recently launched their tax-free bonds"
The coupon rate for qualified institutional buyers (QIB), corporates, high-net worth individuals (HNIs) has been fixed at 7.51% per annum for 15 years and 7.34% per annum.
The issue would open for the subscription on January 9, 2013 and closes on January 22, 2013. The face value of each bond is Rs. 1,000.
The bonds will be listed on the NSE (National Stock Exchange).
SBI Capital Markets, Enam Securities, ICICI Securities and Kotak Mahindra Capital Company Ltd have been appointed as lead managers to the issue.
About HUDCO..!
HUDCO (Housing and Urban Development Corporation Ltd), a mini-ratna company, provide long-term finance for housing and urban infrastructure projects.
The firm posted a net profit of Rs. 630.33 crore over a gross income of Rs. 2,778.63 crore in 2011-12 fiscal.
During the last fiscal, HUDCO sanctioned 130 schemes for a loan amount of Rs. 20,511 crore as against Rs. 19,762 crore in the previous year.
Out of the total loan sanctioned, Rs. 6,307 crore has been sanctioned for housing and Rs. 14,204 crore for infrastructure projects. The disbursal stood at Rs. 6,905 crore in 2011-12 fiscal.

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