National Highways Authority of India (NHAI) has come out with a Tax Free NCD issue of Rs. 5,000 crores with an option to retain over subscription upto Rs. 5,000 crores aggregating to a total of Rs. 10,000 crores.
1) You can collect physical applications forms from reception counters at our offices & also can send you the forms as per your requirement
2) To download applications form, please go to
Key Features:
Issue
Ø Open On: December 28, 2011Issue Closes On: January 11, 2012
Ø Rating: “Care AAA” by Care; “AAA/Stable” by Crisil & “AAA/Stable” by FITCH
Options:
Ø Series I: Tenor of 10 years with an annual coupon payment of 8.20% p.a.
Ø Series II: Tenor of 15 years with an annual coupon payment of 8.30% p.a.
Ø Call / Put Option: Not Applicable
Ø Minimum Application: Rs. 50,000 & in multiples of Rs. 1,000 thereof
Investment Rationale:·
Ø AAA rated paper available at 8.20 / 8.30% p.a. tax free, i.e. a yield of 12.25 – 12.30% pre tax. Comparable papers are trading at a YTM of 9.00 – 9.25%
Ø During the subscription period, 4% interest is paid by NHAI on the unalloted amount and 8.20 / 8.30% on the allotted amount.
Ø Good response expected from QIBs and HNIs
Ø For clients who wish to hold - FD+ returns. SBI Bank’s 3 year FD currently yields ~9.00% p.a.
Who should invest:
Ø Clients with cash surpluses / fixed income allocation
Ø Clients who are invested into liquid / liquid plus funds·
Ø Corporate Treasuries· Non – resident Indians (NRIs)
Allotment:
First come first serve basis for Category I investors (Institutional & Corporate Investors) and Category II investors ((individuals & HUF applying greater Rs 5 lakhs).
Proportionate basis for Category III (Retail) investors (individuals & HUF applying upto Rs 5 lakhs)
You can download the forms below
Download Application Forms
Submit the filled up form to Collection canter near you
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