Gujarat Global News Network, Ahmedabad
Indian Infrastructure Finance Company (IIFCL) is confident that despite its slow off take it will be able to mop up Rs10,000 crore from the market.
All hopes of the IIFCL are on the third quarter when people are more tax conscious and look for attractive schemes to save tax. At that time tax free bonds of IIFCL will attract good investment.
The first tranche of public issue of tax free bonds opened on 3rd October. The Company has been able to raise around Rs 1,000 crore (oversubscription of Rs 500 crore plus) while the issue is to close on October 31.
Executive Director of the Company Dr. Harsh Bhanwala who was here to promote the issue said that the issue got relatively poor response because there were other tax free bonds during the month. They have been oversubscribed.
The excess money of these bonds and two other installments of the public issue in December and February will have a good market.
IIFCL is allowed to raise Rs 10,000 crore during the year. In the first phase it has come out with a bond of Rs 500 crore with an option to retain oversubscription up to Rs 2,000 crore.
Bhanwala said that coupon rate of the bond ranges from 8.26 % to 8.75 % which works out upto 12 percent considering the fact that the bond was tax free. In March when people think in terms of saving tax liability such an offer will bring good investment.
The company has already raised Rs 3,000 crore through private investment. Consequently, it has to raise Rs 6,000 crore during the year.
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