IRFC tax free bonds – opens for subscription tomorrow
The much awaited tax free bond issue is finally here with a big issue size. Indian Railways Finance Corporation (IRFC) opens for subscription tomorrow with an issue size of Rs 4,532 crore, this is almost six times more than that of others issues this fiscal. The other issues had left investors disappointed because of poor allotment due to high demand and small issue size.
Details about the issue-
- Issue opens – 8th Dec 2015
- Issue closes – 21st Dec 2015
- Face Value – Rs 1000/- per bond
- Minimum investment – Rs 5000/- (i.e minimum of 5 bonds to be applied for)
- Maximum investment for retail category – Rs 10 lakh.
- The bond will be listed on BSE and NSE both and will be available in demat and physical form.
- Bond is rated AAA
Looks like an attractive deal for long term investors as they can get a good return compared to fixed deposits which are tax deductible (effective yield on a 8% FD for an investor in 30.9% tax bracket would be around 5.5%).
Would you be subscribing?