HUDCO Tax Free Bonds

There is a good news for those who dont wnat to pay tax on there investments/ returns.HUDCO is bringing the tax free bonds issue which will close on 15th of March 13. This issue is opens on 21st Feb' 13 with the interest rate of  7.69% p.a. as well as special benefit to original allottees with 0.50% p.a.
See the details below.

Housing and Urban Development Corporation Limited (HUDCO) will open its public issue of Tax Free Bonds - Tranche II of the face-value of 1,000 each in the nature of secured, redeemable, non-convertible debentures, having benefits under section 10(15)(iv)(h) of the Income Tax Act, 1961, aggregating up to a total of 500 Crores with an option to retain an over subscription upto the residual shelf limit (i.e. 2,805.66 Crores).

The issue has 2 investment options - 7.53% p.a. (10 Yrs), 7.69% p.a. (15 Yrs) for investments up to and including 10 Lakhs and 7.03% p.a. (10 Yrs), 7.19% p.a. (15 Yrs) for investments above 10 Lakhs. The issue starts on February 21, 2013. Allotment will be on a first come first serve basis across all categories.

The issue has been rated "CARE AA+" by CARE & "IND AA+" by IRRPL (Fitch)

Issue Details Listing NSE Tranche II Series** 1 2 Tenure 10 Years 15 Years Interest Payout Annual Annual Coupon Rate Retail Investors* 7.53% p.a. 7.69% p.a. QIBs, HNIs and Corporates 7.03% p.a. 7.19% p.a. Redemption Amount per Bond Retail Investors* Face Value + Interest Accrued QIBs, HNIs and Corporates Minimum Application 5 Bonds ( 5,000) across both the Series