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.
In the event of a fall in interest rates, wealth managers expect 4-6% price appreciation on premature encashment of the bond.
Investment Options:
For Physical copies - you need to submit KYC (PAN Card, Address Proof & canceled cheque). For customers wanting to apply offline and still get the Bond in demat mode, kindly mention the Demat details in the form. No need to submit KYC for these customers.
In the event of a fall in interest rates, wealth managers expect 4-6% price appreciation on premature encashment of the bond.
Key Features of NHAI TAX Free Bonds NCD:
Issue Open On: December 28, 2011
Issue Closes On: January 11, 2012
Rating: “Care AAA” by Care; “AAA/Stable” by Crisil & “AAA/Stable” by FITCH
Investment Options:
| Options | Series I | Series II |
| Interest Payment | Annual | Annual |
| Coupon Rate (p.a.) | 8.20% | 8.30% |
| Face Value of Bond | 1000 | 1000 |
| Tenor | 10 year | 15 year |
| Interest Paid on | Every Year 1 Oct | |
How Can Invest Individuals & HUF , NRI
Tax Benefits of the Bonds :
- No TDS deduction from the Interest
- The Income by way of Interest on these Bonds is fully exempt from Income Tax
- No Wealth Tax
- No deduction from the total Income will be available for Invested Amount.
Cheque/DD should be drawn in favour of " Escrow Account NHAI - Tranche - I " & cross A/c Payee
For Physical copies - you need to submit KYC (PAN Card, Address Proof & canceled cheque). For customers wanting to apply offline and still get the Bond in demat mode, kindly mention the Demat details in the form. No need to submit KYC for these customers.
Allotment for Retail: No first cum first basis &allotment will happen on proportionate basis.
Allotment for HNI and QIB: will happen on first cum and first serve basis.
Note : NHAI bonds subscribed four-fold in 48 hours
Kindly note the company has exercised the option of early closure and Bonds committee has vide their resolution dated January 03, 2012 decided to close the issue at the close of banking hours on Thursday, January 05, 2012.
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