India Investment

2 Simple tips to make money!

2012-12-06T22:49:00.002-08:00

There are only 2 simple tips to make money. And these tips are given none other than the legendary investor Warren Buffet! Here are the 2 tips:

1. Don't lose money.

2. Never forget the first tip.

Britain: longest double-dip recession since World War II

2012-10-29T22:26:00.001-07:00

Source: Equity Master

Britain is smack in the middle of the longest double-dip recession since World War II. Official records show that the country ran up its largest current account deficit on record in the second quarter of 2012. The deficit was a whopping GBP 20.8 bn. This includes UK's trade balance and a shortfall on overseas investments. The country's citizens are facing tough times. Household spending was down 0.2% over the quarter. The largest declines were in restaurants and hotels, tobacco, and food and drink, as families cut back. However, one positive was that business investment rose 0.9% over the quarter. Overall, the economy contracted by 0.4% during the quarter, slightly less than the previous 0.5% estimate. The economy is still stagnating, and generating employment is the only way to lift economic sentiment. But this is much easier said than done.

Investment limit on infrastructure bonds may rise to Rs 50,000

2012-01-29T04:48:00.000-08:00

The government is considering more than doubling the investment limit in infrastructure bonds eligible for tax rebates as part of a strategy to provide a funding boost to a vital sector while having a beneficial effect across the economy.

Officials told ET the finance ministry's department of economic affairs, as part of its suggestions for the 2012-13 budget, had proposed raising the investment limit in these bonds to Rs 50,000 from Rs 20,000 now. The revenue department is expected to take a final decision after weighing expected economic gains against short-term revenue losses.

"The idea is to see if this can be expanded further. The tax-free bonds are a good option not just for investors, but also for issuers to raise funds," said a ministry official, who asked not to be identified.

After a gap of five years, the 2010-11 budget reintroduced tax breaks on infrastructure bonds, allowing investments of up to Rs 20,000 in these instruments to be deducted from taxable income and effectively helping individuals save Rs 6,180 in taxes.

Initially announced for one year, this concession was extended for another year last year. Now the economic affairs department wants to continue the tax rebate into the next fiscal with a higher limit and a larger number of eligible issuers.

Banks have been lobbying with the finance ministry to allow them to use these bonds to raise long-term funds for lending to the infrastructure sector.

Experts said the proposals being considered made sense.

"There is merit in the proposal as higher tax benefit will allow issuers to raise better amounts," said Vikram Limaye, executive director at IDFC.

Added Feedback Ventures Chairman Vinayak Chatterjee: "The idea is to channelise household and general savings into infrastructure, which has not happened very effectively so far. If a tax break can help, it makes sense."

In 2010-11, IDFC, REC, IIFCL and a few other companies together raised more than Rs 3,000 crore. In the current year, these infrastructure companies have already sought permission to raise about Rs 13,500 crore.

HOUSING AND URBAN DEVELOPMENT CORP. LTD (HUDCO) TAX FREE BONDS, TRANCHE 1 - Key Information

2012-01-26T22:52:00.000-08:00

Issuer		Housing and Urban Development Corporation Limited
Issue Opening Date		January 27, 2012
Issue Closing Date		February 6, 2012
Instrument		Tax-Free Secured Redeemable Non-Convertible Bonds in the nature of Debentures
Min Application Size		Rs 10,000/-
Thereafter in multiples of		Rs 1,000/-
Interest on Refund		4% p.a
Interest on application money		8% p.a.
Credit Rating		„Fitch AA+ (ind)‟by Fitch Limited „CARE AA+‟by CARE
Issue Size		Rs. 2,000 Crore with an Green Shoe option (option to retain oversubscription) of up to Rs. 4,684.72 Crore
Security		The Bonds proposed to be issued are secured by a floating first pari-passu charge on present and future receivables of our Company to the extent of amount mobilized under the Issue. The Company reserves the right to create first pari-passu charge on present and future receivables for its present and future financial requirements.
Tranche	Series-I		Series-II
Tenor	10 Years		15 Years
Put Call Option	None		None
Maturity/ Redemption	At par on the expiry of 10th Year from the Deemed Date of Allotment		At par on the expiry of 15th Year from the Deemed Date of Allotment
Annual Coupon
Retail Investors (Category III)	8.22%		8.35%
Other Investors (Category I & II)	8.10%		8.20%
Note:		The differential rate for retail investor shall be applicable only to the first allottee. In the event of Sale/Transfer by the original allottee of a retail bond, the subsequent allottee will get the rates of the other investors‟category.

Indian Railways Finance Corporation Ltd (IRFC) Tax Free Bonds, Tranche 1 - Key Information :

2012-01-26T22:50:00.000-08:00

IssuerIndian Railway Finance Corporation Limited
Issue Opening DateJanuary 27, 2012
Issue Closing DateFebruary 10, 2012
InstrumentTax-Free Secured Redeemable Non-Convertible Bonds in the nature of Debentures
Min Application SizeRs 10,000/-
Thereafter in multiples ofRs 5,000/-
Interest on Refund4% p.a
Interest on application money8% p.a.
Credit Rating“CRISIL AAA/Stable” by CRISIL, “CARE AAA” by CARE and “ICRA AAA” by ICRA Limited
Issue SizeRs. 3,000 Crore with an Green Shoe option (option to retain oversubscription) of up to Rs. 6,300 Crore
SecurityThe Bonds issued by the Company will be secured by creating a charge on the movable assets of the Company comprising of rolling stock such as wagons, locomotives and coaches by a first /paripassu charge, present and future, as may be agreed between the Company and the Debenture Trustee, pursuant to the terms of the Debenture Trust Deed.
TrancheSeries-ISeries-II
Tenor10 Years15 Years
Put Call OptionNoneNone
Maturity/ RedemptionAt par on the expiry of 10th Year from the Deemed Date of AllotmentAt par on the expiry of 15th Year from the Deemed Date of Allotment
Annual Coupon
Retail Investors (Category III)8.15%8.30%
Other Investors (Category I & II)8.00%8.10%
Note:The differential rate for retail investor shall be applicable only to the first allottee. In the event of Sale/Transfer by the original allottee of a retail bond, the subsequent allottee will get the rates of the other investors’ category.

L&T Long Term Infrastructure Bonds, Tranche 2 - Key Information

2012-01-23T01:36:00.000-08:00

Issue Size - Not Exceeding Rs. 5,705.94 million for the financial year 2011 - 2012.
Nature of Instrument - Secured, Redeemable, Non-Convertible Debentures having benifits under section 80CCF of the Income Tax Act, 1961.
The Bonds will be issued in Demat mode only.
The Bonds having Tax benefits up to Rs. 20,000 per annum under section 80CCF of the Income Tax Act, 1961
The issue has been rated CARE AA+' by CARE and '[ICRA] AA+' by ICRA.
Opening date of the issue: January 10, 2012.
Closing date of the Issue: February 11, 2012.
NRI customers are not eligible to apply for the issue.
Proposed to be listed on BSE.
Eligible Investors: All Resident Individuals and HUF's
Full Allotment to the Applicants on a first come first basis up to the Issue Closing Date or the date falling one day prior to the Oversubscription Date,whichever is earlier.
For Applications received on the Oversubscription Date, the Tranche 2 Bonds shall be Allotted in the following order of priority :
1. All Series 2 Bonds which have been applied for, and
2. All Series 1 Bonds which have been applied for.

The specific terms of each instrument are as follows:

Options	I	II
Frequency of Interest Payment	Annual	Cumulative, (at the end of maturity orbuyback, as applicable)
Face Value	Rs 1000/-
Minimum Application	Rs.5,000/- (i.e. 5 Bond)
Interest Rate p.a. (%)	8.70% p.a.	8.70% p.a. compounded annually
Buyback Option	YES
Buyback Date	The first Working Day after the expiry of 5 years from the Deemed Date of Allotment and the first Working Day after the expiry of 7 years from the Deemed Date of Allotment.
Buyback Amount	Rs 1,000/- at the end of 5 years / Rs 1,000/- at the end of 7 years	Rs 1, 517.57/- at the end of 5 years / Rs 1, 793.11/- at the end of 7 years
Buyback Intimation Period	The period commencing from 6 months preceding the relevant Buyback Date and ending 3 months prior to such Buyback Date
Maturity amount	Rs. 1,000/-	Rs. 2,303.01/-
Maturity Date	10 years from the Deemed Date of Allotment
Yield on Maturity and Yield on Buyback	8.70% p.a.	8.70% p.a. compounded annually
Lock-in-period	5 Years from deemed date of Allotment

IDFC Long Term Infrastructure Bonds, Tranche 2 - Key Information

2012-01-23T01:11:00.000-08:00

Issue Size - Not Exceeding Rs. 44,000 million.
Nature of Instrument - Secured, Redeemable, Non-Convertible Debentures having benifits under section 80CCF of the Income Tax Act, 1961.
The Bonds will be issued in Demat mode.
The issue has been rated '(ICRA)AAA' from ICRA and 'Fitch AAA(ind)' from Fitch.
Opening date of the issue: January 11, 2012.
Closing date of the Issue: February 25, 2012.
NRI customers are not eligible to apply for the issue.
Proposed to be listed on NSE & BSE.
Eligible Investors: All Resident Individuals, who are not minor and HUF's
Full Allotment of Tranche 2 Bonds to the Applicants on a first come first basis up to the issue closing Date for the Prospectus - Tranche 2 or the date falling one day prior to the Oversubscription Date, whichever is earlier.
For Applications received on the Oversubscription Date, the Tranche 2 Bonds shall be Allotted in the following order of priority:
1. Allotment to the Applicants for Series 1 Tranche 2 Bonds
2. Allotment to the Applicants for Series 2 Tranche 2 Bonds

The specific terms of each instrument are as follows:

Options	I	II
Frequency of Interest Payment	Annual	Cumulative
Tenor	120 months from the Deemed Date of Allotment
Face Value	Rs 5000/-
Minimum Application / Application in multiples of	Rs.10,000/- (i.e. 2 Bond) and in multiple of Rs. 1,000/- (i.e. 1 Bond) thereafter.
Interest Rate p.a. (%)	8.70% p.a.	NA
Buyback Option	YES
Buyback Date	Date falling 5 years and one day from the Deemed Date of Allotment
Buyback Amount	Rs. 5,000 per Tranche 2 Bond	Rs. 7,590 per Tranche 2 Bond
Buyback Intimation Period	The period beginning not before nine months prior to the Buyback Date and ending not later than six months prior to the Buyback Date
Maturity amount	Rs. 5,000 per Tranche 2 Bond	Rs. 11,515 per Tranche 2 Bond
Maturity Date	10 years from the Deemed Date of Allotment
Yield on Maturity / Yield on Buyback	8.70% p.a.	8.70% compounded annually
Lock-in-period	5 Years from deemed date of Allotment

Is investing in GOLD always a good idea?

2012-01-22T20:53:00.000-08:00

Here below is an article that appeared in Business Line.
I am copying it here for the benefit of readers of this blog.
Source: http://indiaer.blogspot.com/2012/01/how-bank-deposits-score-over-gold.html

Don't let the recent returns on gold bamboozle you into replacing your FDs and other investments with gold. It is not surprising that investors are seeking out gold after it has completed a nine-year run of positive returns.Second-guessing gold prices is even trickier than forecasting the Sensex, so it certainly isn't a predictable investment.

To anyone taking stock of his/her portfolio today, choices such as fixed deposits or bonds would seem positively foolish when compared with gold. For gold, in rupee terms, has delivered an eye-popping return of 25 per cent on a compounded annual basis over the last five years, while deposits have barely averaged 7 per cent. But don't be fooled because here are four ways in which fixed deposits score over gold.

GOLD LESS PREDICTABLE

Most people flock to gold for its ability to serve up a ‘predictable' return in turbulent times. But such investors tend to be taken in by gold's recent record. With two full-blown economic crises and worries about sovereign default haunting markets, it is no surprise that gold has delivered a 25 per cent return (in rupees) since 2007.

This, however, is a recent phenomenon. Historically, 20 per cent annual returns on gold have been the exception rather than the rule. In fact, a rolling return analysis for the past 20 years (measuring gold price returns at weekly intervals, for five years at a time) shows that gold has managed a 20 per cent return less than one-fifth of the time. What is more, gold didn't manage even an 8 per cent annual return about 45 per cent of the time in the last 20 years. Plus, there was a long stretch in 2001 when investors suffered losses on their gold holdings after a five-year wait.

These numbers suggest that gold price gains are as much a ‘paper' profit as returns from the stock market. They can change dramatically based on the point of entry and exit. Whether you make money on gold depends on how lucky you are in timing your purchases (and sales too). Second-guessing gold prices is even trickier than forecasting the Sensex, so it certainly isn't a predictable investment.

Contrast this with good old bank deposits. You will never make 25 per cent a year on them. But you can invest in them at any time, knowing exactly what you will receive every year by way of interest. One-year bank deposits have delivered a 5.5-9.5 per cent return in the last ten years, averaging 7 per cent a year.

WHAT IS IT WORTH?

Bank deposits also give you returns in the form of regular cash flows with complete safety of capital, while gold doesn't. The regular interest receipts from a bank deposit will continue to flow in, no matter what the state of the world economy, the Indian corporate sector or the rupee is. The same cannot be said of any other asset class, including gold.

Both stocks and bonds, in fact, have a greater claim to fundamentals than gold. Bonds represent the obligation of a company to pay back your money at the end of a certain period. The company's repaying ability is backed by its assets and an assessment of its prospects by a credit rating agency.

Stocks too are valued based on the earnings potential of the underlying company. If stock prices move too far away from the earnings potential or book value of the company, investors can decide to stay away.

However, gold, being a commodity, has no common measure of intrinsic worth. Its prices rise if demand at that point in time exceeds supply. That makes it impossible to say if gold, after trebling in the last five years, remains under-valued. Or even how much it could fall, if a correction takes shape.

NO HIDDEN EXTRAS

Then there is the liquidity aspect. Deposits or bonds have a definite maturity date when you can be sure of retrieving your capital. If you need to pre-close them, you can do that too, with a sacrifice on returns. Your capital remains intact. With gold, especially if bought in jewellery, coin or bar form, liquidation is not easy. If sold to the neighbourhood jeweller, it entails costs such as wastage and making charges, which cut into your returns.

Any fall in prices too can erode capital.

Moderating inflation further strengthens the case for deposits over gold. Inflation rates, after soaring through the roof in the past two years, have begun to moderate of late. If this continues over the next 3-5 years, gold as a hedge against inflation could lose sheen. But investors who are sitting pretty on five-year deposits at current rates of 9-10 per cent a year will stand to gain. Apart from securing safety of capital, they will take home a fixed return over and above inflation.

Overall, given its risk profile, gold is a better substitute for the equities in your portfolio than deposits or bonds. But even while replacing equities, it is best to stick to 5-10 per cent exposure to gold, strictly through the exchange traded fund route.

SREI INFRASTRUCTURE FINANCE LIMITED BONDS - TRANCHE1 - Key Information

2012-01-07T21:45:00.000-08:00

The size of the issue is aggregating up to Rs. 3000.
Nature of Instrument - Secured, Redeemable, Non-Convertible Debentures.
The Bonds will be issued in Demat mode only
The Bonds having Tax benefits up to Rs. 20,000 per annum under section 80CCF of the Income Tax Act, 1961.
The Bonds have been rated 'CARE AA' by CARE
Opening date of the issue: December 31, 2011.
Closing date of the Issue: January 31, 2012.
Proposed to be listed on BSE.
Eligible Investors: All Resident Individuals and HUF's (NRI's are not eligible to apply for the issue)

The specific terms of each instrument are as follows:

Series	I	II	III	IV
Frequency of Interest Payment	Annual	Cumulative	Annual	Cumulative
Buyback Facility	Yes
Face Value	Rs 1000/-
Minimum Application / Application in multiples of	Rs.1000/- (i.e.1 Bond)
Buyback Date	One date, being the date falling five years and one day from the Deemed Date of Allotment
Buyback Amount	Rs 1,000 per Tranche 1 Bond and accrued interest calculated from the last interest payment date to the Buyback Date	Rs 1531.58 per Tranche 1 Bond and interest on Application Interest compounded annually at the end of five years	Rs 1,000 per Tranche 1 Bond and accrued interest calculated from the last interest payment date to the Buyback Date	Rs 1549.24 per Tranche 1 Bond and interest on Application Interest compounded annually at the end of five years
Buyback Intimation Period	The period beginning not more than nine months prior to the Buyback Date and ending not later than six months prior to the Buyback Date
Interest Rate p.a. (%)	8.90% p.a.	8.90% p.a., compounded annually	9.15% p.a.	9.15% p.a., compounded annually
Redemption/Maturity Date	One date, being the date falling ten years from the Deemed Date of Allotment		One date, being the date falling fifteen years from the Deemed Date of Allotment
Maturity Amount	Rs 1,000 per Tranche 1 Bond and accrued interest calculated from the last interest payment date to the Maturity Date	Rs 2346.73 per Tranche 1 Bond and interest on Application Interest compounded annually at the end of ten years	Rs 1,000 per Tranche 1 Bond and accrued interest calculated from the last interest payment date to the Maturity Date	Rs 3718.40 per Tranche 1 Bond and interest on Application Interest compounded annually at the end of fifteen years
Lock in period	5 years from the Deemed Date of Allotment
Deemed Date of Allotment	Deemed Date of Allotment shall be the date as may be determined by the Board/Committee of Directors of our Company and notified to the Stock Exchange. The actual allotment may occur on the date other than the Deemed Date of Allotment.

What is your "CAPITAL GAINS" from equity this year?

2011-12-30T02:58:00.000-08:00

Capital Gains Taxes in Equity transactions.

Short term capital gains tax: If the holding period of the stock is less than 12 months - then the gains attract a tax rate of 15%.

· Long term capital gains tax: If the holding period of the stock is more than 12 months - then the gains do not attract any tax (this might change after 2012 March).

Look at this example to understand it better:

Miss. Vijetha has purchased shares of company A and B on April 11, 2010 for a total price of `1,00,000 each. As on February 20, 2011, value of her investments is as follows:

In stock A, Miss. Vijetha has profit of `30,000 and in stock B, Miss. Vijetha has a loss of `50,000. Now she has the following 4 options to choose from taxation perspective:

Scenario		Outcome
Scenario 1	She can hold both stocks for more than 12 months (either expecting good profit or to get exempt from capital gains tax)	No long term capital gains tax
Scenario 2	She can book profit in stock A and hold stock B which is in loss	On the profit position in stock A she pays short term capital gains tax of 15%
Scenario 3	She can sell stock A - book profits and Sell stock B - book losses	Profit of `30,000 in stock A - Loss of `50,000 in stock B = Net Loss of `20,00. This loss can be carried forward for next 8 financial years. Short term capital gain tax is NIL since she is in loss.
Scenario 4	Hold stock A for more than 12 months and Book losses in stock B	No long term capital gains tax in stock A and short term capital loss of ` 50,000. This loss of `50,000 can be carried forward for next 8 financial years.

Take a look at all the stocks you have purchased & sold in a financial year and calculate the capital gains/loss incurred.

PFC Tax-Free Bonds Tranche - 1 - Dec 2011 : Key Information

2011-12-30T01:15:00.000-08:00

The size of the issue is aggregating up to Rs. 1,000 Crore with an option to retain over-subscription upto the Shelf Limit (i.e. Rs 4033.13 Crore).
Nature of Indebtedness :The claims of the Bondholders shall rank pari passu with other secured creditors having a charge over the on the book debts of the company and/or identified immovable property as may be agreed between the Company and the Debenture Trustee, pursuant to the terms of the Debenture Trust Deed and such claims shall be superior to the claims of any unsecured creditors.
The Bonds will be issued in Demat mode only.
CRISIL Limited ("CRISIL") has assigned a rating of CRISIL AAA/Stable (pronounced as "CRISIL Triple A rating with stable outlook") to the long term borrowing programme of Rs 38,500 Crores and CRISIL A1+ (pronounced as CRISIL A One Plus) to the short term borrowing programme of Rs 5000 Crores (a total of Rs 43,500 crores).
ICRA Limited has assigned a rating of ICRA AAA (pronounced ICRA triple A) to the Long Term Borrowing Programme of Rs 43,500 crores during the financial year 2011-12.
Opening date of the issue: December 30, 2011
Closing date of the Issue: January 16, 2012
The subscription list for the Issue shall remain open for subscription at the commencement of banking hours and close at the close of banking hours, with an option for early closure (subject to the Issue being open for a minimum of 3 days i.e. upto January 2, 2012) or extension by such period, upto a period of 30 days from the date of opening of the Issue, as may be decided by the Board of Directors/ Committee of the Company.
Further, Allotment shall be on first come first serve basis, with Issuer Company having the discretion to close the Issue early irrespective of whether any of the Portion(s) are fully subscribed.
Multiple Applications:
- An applicant is allowed to make one or more applications for the Bonds for the same or other series of Bonds, subject to a minimum application size of Rs. 10,000 and in multiples of Rs 5,000 thereafter, for each application.
NRI customers on repatriation as well as non-repatriation basis are eligible to apply for the issue.
Proposed to be listed on BSE.

Eligible Investors:

Category I
- Public Financial Institutions, Statutory Corporations, Commercial Banks, Co-operative Banks and Regional Rural Banks, which are authorised to invest in the Bonds.
- Provident Funds, Pension Funds, Superannuation Funds and Gratuity Fund, which are authorised to invest in the Bonds.
- Insurance companies registered with the IRDA.
- National Investment Fund.
- Mutual Funds.
- Foreign Institutional Investors (including sub-accounts).
- Companies; bodies corporate and societies registered under the applicable laws in India and authorised to invest in the Bonds.
- Public/private charitable/religious trusts which are authorised to invest in the Bonds.
- Scientific and/or industrial research organisations, which are authorised to invest in the Bonds.
- Partnership firms in the name of the partners.
- Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (No. 6 of 2009).
Category II
The following investors applying for an amount aggregating to above Rs 5 lakhs across all Series in each tranche:
- Resident Indian individuals.
- Hindu Undivided Families through the Karta.
- Non Resident Indians on repatriation as well as non-repatriation basis.
Category III
The following investors applying for an amount aggregating to upto and including Rs 5 lakhs across all Series in each tranche:
- Resident Indian individuals.
- Hindu Undivided Families through the Karta.
- Non Resident Indians on repatriation as well as non-repatriation basis.
Allocations will be on a First Come First Serve Basis, as follows:
1. 50% - Applicants belonging to Category I
2. 25% - applicants belonging to Category II
3. 25% - Applicants belonging to Category III
Under Subscription: If there is any under subscription in any Portion, priority in allotments will be given in the following order:
1. Category III Portion
2. Category II Portion
3. Category I Portion
on a first come first serve basis within each Portion.
Allotments in case of oversubscription: In case of an oversubscription, allotments to the maximum extent, as possible, will be made on a first-come first-serve basis and thereafter on proportionate basis, i.e. full allotment of Bonds to the applicants on a first come first basis up to the date falling 1 (one) day prior to the date of oversubscription and proportionate allotment of Bonds to the applicants on the date of oversubscription (based on the date of submission of each application to the Bankers to the Issue, in each Portion).
Proportionate Allotments: For each Portion, on the date of oversubscription:
1. Allotments to the applicants shall be made in proportion to their respective application size, rounded off to the nearest integer,
2. If the process of rounding off to the nearest integer results in the actual allocation of Bonds being higher than the Issue size, not all applicants will be allotted the number of Bonds arrived at after such rounding off. Rather, each applicant whose allotment size, prior to rounding off, had the highest decimal point would be given preference,
3. In the event, there are more than one applicant whose entitlement remain equal after the manner of distribution referred to above, PFC will ensure that the basis of allotment is finalised by draw of lots in a fair and equitable manner.

The specific terms of each instrument are as follows:

Options	Tranche I Series I	Tranche I Series II
Frequency of Interest Payment	Annual	Annual
Tenor	10 Years	15 Years
Face Value per Bond	Rs 1000/-
Minimum Application	10 Bonds i.e. Rs. 10,000
In multiples of	5 Bond i.e. Rs. 5,000
Coupon Rate	8.20% p.a.	8.30% p.a.
Redemption Date	10 Years for Deemed Date of Allotment	15 Years for Deemed Date of Allotment
Redemption amount per Bond	Repayment of the Face Value plus any interest that may have accrued at the Redemption Date
Deemed Date of Allotment	Deemed Date of Allotment shall be the date on which the Board of Directors/or any committee thereof approves the Allotment of the Bonds for each Tranche Issue. All benefits relating to the Bonds including interest on Bonds (as specified for each tranche by way of respective Tranche Prospectus) shall be available to the Bondholders from the Deemed Date of Allotment. The actual allotment of Bonds may take place on a date other than the Deemed Date of Allotment

Read the prospectus here.

NHAI Tax-Free Bonds - Dec 2011 : Key Information

2011-12-30T01:05:00.000-08:00

The size of the issue is aggregating up to Rs. 5,00,000 Lacs with an option to retain over-subscription upto the Shelf Limit (i.e. upto Rs 10,00,000 Lacs).
Nature of Indebtedness :
1. Series I : The Bonds shall rank pari passu inter se, and subject to any obligations under applicable statutory and/or regulatory requirements, shall also, with regard to the amount invested, be secured by way of first pari passu charge on the immovable properties situated at Ahmedabad and first charge on fixed assets of NHAI (as reflected in the Balance Sheet for the financial year ended March 31, 2011), being highway project comprising of all superstructure including highway lightings, road barriers and dividers, bridges, culverts and all other super structures constructured on national highways except those under the Surat-Manor Tollway Project entrusted to NHAI to the extent of 100% of the amounts outstanding in respect of the Bonds at any time. The mode of creation of security shall be by way of mortgage and the security creation requires prior approval and authorization by the Central Government as owner of the land. The NOC for the same has been received from the Central Government. The claims of the Bond holders shall be superior to the claims of any unsecured creditors, subject to applicable statutory and/or regulatory requirements and shall rank pari passu to the claims of the secured creditors of NHAI.
2. Series II : The Bonds shall rank pari passu inter se, and subject to any obligations under applicable statutory and/or regulatory requirements, shall also, with regard to the amount invested, be secured by way of first pari passu charge on the immovable properties situated at Ahmedabad and exclusive first charge on fixed assets of NHAI (as reflected in the Balance Sheet for the financial year ended March 31, 2011), being highway project comprising of all superstructure including highway lightings, road barriers and dividers, bridges, culverts and all other super structures constructured on national highways except those under the Surat-Manor Tollway Project entrusted to NHAI to the extent of 100% of the amounts outstanding in respect of the Bonds at any time. The mode of creation of security shall be by way of mortgage and the security creation requires prior approval and authorization by the Central Government as owner of the land. The NOC for the same has been received from the Central Government. The claims of the Bond holders shall be superior to the claims of any unsecured creditors, subject to applicable statutory and/or regulatory requirements and shall rank pari passu to the claims of the secured creditors of NHAI.
The NCDs will be issued in Demat mode only.
"CRISIL AAA/Stable" by CRISIL, "CARE AAA" by CARE and "Fitch AAA(ind) with Stable Outlook" by FITCH
Opening date of the issue: December 28, 2011.
Closing date of the Issue: January 11, 2011 (with discretion to close early or extension by such period upto a maximum period of 30 days from the date of opening of the Issue, as may be decided by the Board of NHAI subject to necessary approvals).
Multiple Applications:
- An applicant is allowed to make one or more applications for the NCDs for the same or other series of NCDs, subject to a minimum application size of Rs. 50,000 and in multiples of Rs 1,000 thereafter, for each application.
NRI customers on repatriation as well as non-repatriation basis are eligible to apply for the issue.
Proposed to be listed on NSE and BSE.
Eligible Investors:
- Category I
  - Public Financial Institutions, Statutory Corporations, Commercial Banks, Co-operative Banks and Regional Rural Banks, which are authorised to invest in the Bonds.
  - Provident Funds, Pension Funds, Superannuation Funds and Gratuity Fund, which are authorised to invest in the Bonds.
  - Insurance companies registered with the IRDA.
  - National Investment Fund.
  - Mutual Funds.
  - Foreign Institutional Investors (including sub-accounts).
  - Companies (corporate and societies) registered under the applicable laws in India and authorised to invest in the Bonds.
  - Public/private charitable/religious trusts which are authorised to invest in the Bonds.
  - Scientific and/or industrial research organisations, which are authorised to invest in the Bonds.
  - Partnership firms in the name of the partners.
  - Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (No. 6 of 2009)
- Category II
  The following investors applying for an amount aggregating to above Rs 5 lakhs across all Series in each tranche:
  - Resident Indian individuals.
  - Hindu Undivided Families through the Karta.
  - Non Resident Indians on repatriation as well as non-repatriation basis.
- Category III
  The following investors applying for an amount aggregating to upto and including above Rs 5 lakhs across all Series in each tranche:
  - Resident Indian individuals.
  - Hindu Undivided Families through the Karta.
  - Non Resident Indians on repatriation as well as non-repatriation basis.
Allocations will be on a First Come First Serve Basis, as follows:
- 40% - Applicants belonging to Category I
- 30% - applicants belonging to Category II
- 30% - Applicants belonging to Category III
Under Subscription :
If there is any under subscription in any Portion, priority in allotments will be given in the following order:
- Category III Portion
- Category II Portion
- Category I Portion
Allotments in case of oversubscription: In case of an oversubscription in Category I Potion and Category II Portion, allotments to the maximum extent, as possible, will be made on a first-come first-serve basis and thereafter on proportionate basis, i.e. full allotment of Bonds to the applicants on a first come first basis up to the date falling 1 (one) day prior to the date of oversubscription and proportionate allotment of Bonds to the applicants on the date of oversubscription (based on the date of submission of each application to the Bankers to the Issue, in each Portion).

Proportionate Allotments : For Category III Portion, all valid applications received during the Issue Period shall be considerd for allotment on a proportionate basis. For each PortionCategory I and II Portion, on the date of oversubscription, allotment shall be made on a proportionate basis. The method of proportionate allotment is as described below:
- Allotments to the applicants shall be made in proportion to their respective application size, rounded off to the nearest integer,
- If the process of rounding off to the nearest integer results in the actual allocation of Bonds being higher than the Issue size, not all applicants will be allotted the number of Bonds arrived at after such rounding off. Rather, each applicant whose allotment size, prior to rounding off, had the highest decimal point would be given preference,
- In the event, there are more than one applicant whose entitlement remain equal after the manner of distribution referred to above, NHAI will ensure that the basis of allotment is finalised by draw of lots in a fair and equitable manner.

The specific terms of each instrument are as follows:

Options	Tranche I Series I	Tranche I Series II
Frequency of Interest Payment	Annual	Annual
Tenor	10 Years	15 Years
Face Value of NCD(Rs / NCD)	Rs 1000/-
Minimum Application	50 Bonds i.e. Rs. 50,000
In multiples of	1 Bond i.e. Rs. 1,000
Coupon Rate	8.20% p.a.	8.30% p.a.
Redemption Date	At par at the end of 10th Year from the Deemed Date of Allotment	At par at the end of 15th Year from the Deemed Date of Allotment
Redemption amount per Bond	Repayment of the Face Value of Bonds plus any interest that may have accrued at the Redemption Date
Deemed Date of Allotment	The Deemed Date of Allotment shall be the date as may be determined by the Board or Committee and notified to the BSE and NSE. All benefits under the Bonds including payment of interest will accrue to the Bondholders from the Deemed Date of Allotment. Actual Allotment may occur on a date other than the Deemed Date of Allotment.

REC LONG TERM INFRASTRUCTURE BONDS 2011-2012 (Save Tax under section 80CCF) : Key Information

2011-12-30T00:42:00.000-08:00

The size of the issue is aggregating up to Rs. 100 crore with a green-shoe option to retain over-subscription.
Nature of Instrument - Unsecured, Redeemable, Non-Convertible Bonds.
The Bonds will be issued in Demat mode only,
The issue has been rated 'AAA Stable' by CRISIL; 'CARE AAA' by CARE and 'LAAA' by ICRA.
Opening date of the issue: December 19, 2011.
Closing date of the Issue: February 10, 2011 (discretion to close early subject to necessary approvals).
NRI customers are not eligible to apply for the issue.
Proposed to be listed on NSE & BSE.
Eligible Investors: All Resident Individuals and HUF's
The specific terms of each instrument are as follows:

Options	I	II	III	IV
Frequency of Interest Payment	Cumulative	Annual	Cumulative	Annual
Tenor	10(Ten) Years		15(Fifteen) Years
Face Value	Rs 5000/-
Minimum Application / Application in multiples of	Rs 5000/-(i.e. 1 Bond)
Coupon Rate (% p.a.)	8.95% p.a. (Annual Compounding)	8.95% p.a. (payable annually))	9.15% p.a. (Annual Compounding)	9.15% p.a. (payable annually)
Coupon Payment Daten	At the time of maturity	15th February every year	At the time of maturity	15th February every year
Buyback Option	At the end of 5 yrs+ 1day	At the end of 5 yrs +1 day	At the end of 7 yrs + 1 day	At the end of 7 yrs + 1 day
Maturity Date / Maturity amount in case of buy back option
Maturity Date	16 February 2017		16 February 2019
Maturity Amt. after 5 yrs + 1 day	Rs.7677/-	Rs.5000/-	Not Applicable	Not Applicable
Maturity Amt. after 7 yrs + 1 day	Not Applicable	Not Applicable	Rs.9231/-	Rs.5000/-
Maturity Date / Maturity amount in case of without buy back option
Maturity Date	15 February 2022		15 February 2027
Maturity Amt after 10 yrs	Rs.11783/-	Rs.5000/-	Not Applicable.	Not Applicable
Maturity Amt after 15 yrs	Not Applicable	Not Applicable	Rs.18592/-	Rs.5000/-
Lock-in-period	5 Years from deemed date of Allotment

Click Here to download application.

   Registrar to the Issue :
             M/s Beetal Financial & Computer Services Pvt. Ltd.,
             Beetal House, 3rd Floor, 99 Madangir,
             Behind Local Shopping Center, New Dehi -110062
             Phone No. 011-29961281-3
             Email: recbonds@gmail.com

        For any assistance or clarification please contact:
            REC LIMITED, Bond Section
            Core-4, SCOPE Complex
            7, Lodhi Road
            New Delhi - 110003
            Phone : 011-43091527, 011-24361320
            Tollfree No. : 1800-200-1333
            Email:investorcell@recl.nic.in

Muthoot Finance Limited - NCD - Dec'11 (Double your money in 5½ years) : Key Information

2011-12-30T00:28:00.000-08:00

The size of the issue is aggregating up to Rs. 3000 million with an option to retain over-subscription.
Nature of Indebtedness - Pari passu with other secured creditors and priority over unsecured creditors.
The NCDs will be issued in Demat mode only
The issue has been rated 'CRISIL AA-/Stable' by CRISIL '[ICRA] AA-(stable)' by ICRA.
Opening date of the issue: December 22, 2011.
Closing date of the Issue: January 07, 2011 (discretion to close early subject to necessary approvals).
Applications:
- An applicant is allowed to make one or more applications for the NCDs for the same or other series of NCDs, subject to a minimum application size of Rs. 5,000 and in multiples of Rs 1,000 thereafter, for each application.
- However, multiple applications by the same applicant belonging to Category III aggregating to a value exceeding Rs. 500,000 shall be grouped in Category II, for the purpose of determining the basis of allotment to such applicant.
NRI customers are not eligible to apply for the issue.
Proposed to be listed on BSE.
Eligible Investors:
- Category I
  - Public Financial Institutions, Statutory Corporations, Commercial Banks, Co-operative Banks and Regional Rural Banks, which are authorised to invest in the NCDs.
  - Provident Funds, Pension Funds, Superannuation Funds and Gratuity Fund, which are authorised to invest in the NCDs.
  - Venture Capital funds registered with SEBI.
  - Insurance Companies registered with the IRDA.
  - National Investment Fund.
  - Mutual Funds.
- Category II
  - Companies (corporate and societies) registered under the applicable laws in India and authorised to invest in the NCDs.
  - Public/private charitable/religious trusts which are authorised to invest in the NCDs.
  - Scientific and/or industrial research organisations, which are authorised to invest in the NCDs.
  - Partnership firms in the name of the partners.
  - Limited Liability Partnerships formed and registered under the provisions of the Limited Liability.
  - Partnership Act, 2008 (No. 6 of 2009).
  - Resident Indian individuals and Hindu Undivided Families through the Karta applying for NCDs aggregating to a value exceeding Rs. 500,000, across all series of NCDs, (Option I and/or Option II and/or Option III).
- Category III
  - Resident Indian individuals and Hindu Undivided Families through the Karta applying for NCDs aggregating to a value not more than Rs. 500,000 across all series of NCDs, (Option I and/or Option II and/or Option III).
Allocations will be on a First Come First Serve Basis, with reservations as follows:
- 20% - Applicants belonging to Category I
- 40% - applicants belonging to Category II
- 40% - Applicants belonging to Category III
Proportionate Allotments: For each Portion, in case of oversubscription:
- Allotments to the Applicants shall be made in proportion to their respective application size, rounded off to the nearest integer.
- If the process of rounding off to the nearest integer results in the actual allocation of NCDs being higher than the Issue size, not all Applicants will be allotted the number of NCDs arrived at after such rounding off. Rather, each Applicant whose allotment size, prior to rounding off, had the highest decimal point would be given preference.
- In the event, there are more than one applicant whose entitlement remain equal after the manner of distribution referred to above, our Company will ensure that the basis of allotment is finalised by draw of lots in a fair and equitable manner.
If there is any under subscription in any category, priority in allotments will be given to the Category III, and balance, if any, shall be first made to applicants of Category II, and thereafter Category I on a first come first serve basis, on proportionate basis.

The specific terms of each instrument are as follows:

Options	I	II	III	IV
Frequency of Interest Payment	Annual	Annual	Annual	NA
Tenor	24 months	36 months	60 months	66 months
Face Value of NCD(Rs / NCD)	Rs 1000/-
Minimum Application	Rs.5000/- (i.e.5 NCDs) (for all options of NCDs, namely Option I, Option II, Option III and Option IV either taken individually or collectively)
In multiples of	Rs 1,000 (1 NCD)
Issue Price(Rs/ NCD)	Rs 1,000
Mode of Interest Payment	Through various options available
Inerest Rate (%) for NCD Holders in all Category	13.00%	13.25%	13.25%	NA
Effective Yield (per annum) for NCD Holders in all Category	13.00%	13.25%	13.25%	13.43%
Redemption Date (from Deemed Date of Allotment)	24 months	36 months	60 months	66 months
Redemption amount (per NCD)	Repayment of the face value plus any interest that may have accured at the Redemption Date.			Rs 2,000
Nature of Indebtednedd	Pari passu with other secured creditors and priority over unsecured creditors
Deemed Date of Allotment	Deemed date of allotment shall be the date as decided by the duly authorised committee of the Board constituted by resolution of the Board dated July 25, 2011, and as mentioned on the Allotment Advice / regret.

Click here to download application.

L&T Long Term Infrastructure Bonds 2011-12 B Series (Tranche-1) - Closes on December 24th

2011-12-19T09:42:00.000-08:00

L&T Long Term Infrastructure Bonds 2011-12 B Series (Tranche-1)

L&T Infrastructure Finance Company Ltd has launched Public issue of Long Term Infrastructure Bonds 2011 B Series (Tranche-1) of face value of Rs. 1,000 each, as nature of secured, redeemable, non-convertible debentures, having benefits under section 80CCF of the Income Tax act, 1961 (the “Tranche 1 Bonds”), not exceeding Rs. 1100 Crore for the FY 2012, to be issued at par on the terms contained in the Shelf Prospectus – Tranche 1.

Issue Details

Long Term Infrastructure Bonds 2011B Series (Tranche-1)
Tranche 1 Bond Series	1	2
Issue Opens	Friday, November 25, 2011
Issue Closes	Saturday, December 24, 2011*
Issuer	L&T Infrastructure Finance Company Limited
Listing	BSE
Trading	Dematerialized form only following expiry of Lock-in Period
Rating	“(ICRA)AA+” from ICRA and “CARE AA+” from CARE
Interest Rate	9% p. a.	9.00% p.a. compounded annually
Face Value per Bond	Rs. 1,000/-	Rs. 1,000/-
Frequency of Interest payment	Annual	Cumulative
Registrar	Sharepro Services (India) Private Limited.
Minimum Application	5 Tranche 1 Bonds and in multiple of 1 Tranche 1 Bond thereafter. For the purpose of fulfilling the requirement of min subscription of 5 Tranche 1 bonds, an applicant may choose to apply for the Tranche 1 bonds across the same series or different series.
Who can apply?	• Indian nationals resident in India, who are not minors, in single or joint names (not more than three); and • Hindu Undivided Families or HUFs, in the individual name of the Karta.
Debenture Trustee	Bank of Maharashtra
Lock in Period	5 years from the deemed date of allotment
Issuance	Dematerialized form or Physical form as specified by an Applicant in the Application Form.
Buyback Facility	Yes	Yes
Buyback Date	The first Working Day after the expiry of 5 years from the Deemed Date ofAllotment and the first Working Day after the expiry of 7 years from the Deemed Date of Allotment.
Buyback Amount	Rs. 1,000/- at the end of 5 years/ Rs. 1,000/- at the end of 7 years	Rs. 1,538/62 at the end of 5 years/ Rs. 1,828/04 at the end of 7 years
Buyback Intimation Period	The period commencing from 6 months preceding the relevant Buyback Date and Ending 3 months prior to such Buyback Date.
Maturity Date	10 years from the Deemed Date ofAllotment	10 years from the Deemed Date of Allotment
Maturity Amount	1000.00	2367.36
Yield on Maturity	9.00%	9.00% compounded annually
Yield on Buyback	9.00%	9.00% compounded annually

Tax Benefits

Tax Benefit: THE TRANCHE 1 BONDS ARE CLASSIFIED AS “LONG TERM INFRASTRUCTURE BONDS” IN TERMS OF SECTION 80CCF OF THE INCOME TAX ACT AND THE NOTIFICATION. IN ACCORDANCE WITH SECTION 80CCF OF THE INCOME TAX ACT, THE AMOUNT, NOT EXCEEDING ` 20,000 PER ANNUM, PAID OR DEPOSITED AS SUBSCRIPTION TO LONG TERM INFRASTRUCTURE BONDS DURING THE PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEAR BEGINNING APRIL 01, 2012 SHALL BE DEDUCTED IN COMPUTING THE TAXABLE INCOME OF A RESIDENT INDIVIDUAL OR HUF. IN THE EVENT THAT ANY APPLICANT APPLIES FOR THE TRANCHE 1 BONDS IN EXCESS OF ` 20,000 PER ANNUM, (INCLUDING LONG TERM INFRASTRUCTURE BONDS ISSUED BY ANY OTHER ELIGIBLE ENTITY), THE AFORESTATED TAX BENEFIT SHALL BE AVAILABLE TO SUCH APPLICANT ONLY TO THE EXTENT OF ` 20,000 PER ANNUM.

Other Conditions

* The Issue shall remain open for subscription during banking hours for the period indicated above, except that the Issue may close on such earlier date or extended date as may be decided by the Board subject to necessary approvals. In the event of an early closure or extension of the Issue, the Company shall ensure that notice of the same is provided to the prospective investors through newspaper advertisements on or before such earlier or extended date of Issue closure. Interest on Application and Refund Money The Company shall not pay any interest on the application monies collected pursuant to the Issue pending allotment of the Tranche 1 Bonds. The Company shall not pay any interest on refund of application monies on the amount not allotted.

Get 13.00% interest with 'A+' Rated SECURED NCDs!!!!

2011-12-19T09:21:00.000-08:00

Source: http://indiaer.blogspot.com/2011/12/get-1300-pa-with-rated-secured-ncds.html

Get 13.00% pa with 'A+' Rated SECURED NCDs

We are pleased to present you an opportunity to invest in the Private Placement of Secured NCDs by Muthoot Fincorp Ltd. The issue carries attractive rates ranging between 12.75-13.00% pa. The NCDs are available in 2 options – 18 and 36 Months. Total size of this issue is 150 Cr. The debentures are allotted on a first cum first serve basis and in demat mode only.

Terms of the Issue -

Options	1	2
Tenor	18 Months	36 Months
Coupon (% pa)	12.75%	13.00%
Rating	A+ by CRISIL
Frequency of Interest Payment	Annually
Face Value (Rs./Debenture)	1 Lakh
Issue Price (Rs./Debenture)	1 Lakh
Minimum Application	1 Debenture
Put/Call option	No
Redemption Amount (Rs./Debenture)	1 Lakh
Listing	WDM Segment of BSE
Issue Closing Date	31st December 2011

Company Overview -

Muthoot Fincorp Limited is a finance company catering to the financial needs of retail and institutional customers. It is registered with the Reserve Bank of India as a systemically important non-deposit taking non-banking finance company (NBFC) with a paid up capital of Rs 181.25 crores and a Net Owned Fund of Rs 766.50 cr as on 30.09.2011.

Muthoot Fincorp Limited provides a host of financial services through a wide network of over 1590 branches pan India. It has a diverse mix of retail offerings in the areas of Consumer loan products and investment advisory services. These include Gold loans, Home loans, Auto loans, Loans against Property, Investment products and Advisory Services.

The issue closes on Dec 31^st, 2011. Kindly contact for the application forms.

Issuer		Indian Railway Finance Corporation Limited
Issue Opening Date		January 27, 2012
Issue Closing Date		February 10, 2012
Instrument		Tax-Free Secured Redeemable Non-Convertible Bonds in the nature of Debentures
Min Application Size		Rs 10,000/-
Thereafter in multiples of		Rs 5,000/-
Interest on Refund		4% p.a
Interest on application money		8% p.a.
Credit Rating		“CRISIL AAA/Stable” by CRISIL, “CARE AAA” by CARE and “ICRA AAA” by ICRA Limited
Issue Size		Rs. 3,000 Crore with an Green Shoe option (option to retain oversubscription) of up to Rs. 6,300 Crore
Security		The Bonds issued by the Company will be secured by creating a charge on the movable assets of the Company comprising of rolling stock such as wagons, locomotives and coaches by a first /paripassu charge, present and future, as may be agreed between the Company and the Debenture Trustee, pursuant to the terms of the Debenture Trust Deed.
Tranche	Series-I		Series-II
Tenor	10 Years		15 Years
Put Call Option	None		None
Maturity/ Redemption	At par on the expiry of 10th Year from the Deemed Date of Allotment		At par on the expiry of 15th Year from the Deemed Date of Allotment
Annual Coupon
Retail Investors (Category III)	8.15%		8.30%
Other Investors (Category I & II)	8.00%		8.10%
Note:		The differential rate for retail investor shall be applicable only to the first allottee. In the event of Sale/Transfer by the original allottee of a retail bond, the subsequent allottee will get the rates of the other investors’ category.