Posted: 23 Dec 2011 12:18 PM PST
National Highways Authority of India (NHAI) running under Road Transport & Highways Government of India is launching Tax Free bonds, as per reports, from December 28, 2011 with coupon rates of 8.20% under 10 years plan and 8.30% under 15 years plan, for the value of Rs 5000 Crore with option to retain oversubscription of Rs 5000 Crore with face value of bonds of Rs 1000/- each at par value. The terms and conditions of Tax Free bonds are :
For query of application forms mail us at: Jainbroker@yahoo.in these will be posted or mailed on receiving at our end.
| NATIONAL HIGHWAYS AUTHORITY OF INDIA | ||
| Issue Opening Date | 28/12/2011 | |
| Issue Closing Date | 11/01/2012 | |
| Issue shall remain open for subscription for a minimum of 3 days or such extended period upto a maximum period of 30 days from the date of opening of the Issue. In case of early closure, NHAI shall ensure that public notice of such early closure is published on or before the day of such early date of closure through advertisement/s in a leading national daily newspaper | ||
| HIGHLIGHTS OF THE BOND ISSUE | ||
| Issuer | National Highways Authority of India | |
| Nature of Instrument | Tax-Free Secured Redeemable Non-Convertible Bonds in the nature of Debentures | |
| Issue Size | Rs. 5,000 crore with an option to retain oversubscription of upto Rs. 5,000 crore | |
| Tax Benefits | 1. The income by way of interest on these Bonds shall not form part of total income as per provisions under section 10 (15) (iv) (h) of I.T. Act, 1961;
2. There shall be no deduction of tax at source from the interest, which accrues to the bondholders in these bonds irrespective of the amount of the interest or the status of the investors;
3. As per provisions under section 2 (29A) of the I.T. Act, read with section 2 (42A) of the I.T. Act, a listed Bond is treated as a long term capital asset if the same is held for more than 12 months immediately preceding the date of its transfer. Under section 112 of the I.T. Act, capital gains arising on the transfer of listed Bonds shall be taxed @ 10% without indexation;
4. Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957.
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| Instrument Form | At the option of investors, in dematerialized as well as in physical form | |
| Security | Pari passu charge on the immovable property situated at Ahmadabad and exclusive first charge on fixed assets of NHAI, being highway project comprising of all superstructure including highway lightings, road barriers and dividers, bridges, culverts and all other super structures constructed on national highways entrusted to NHAI | |
| Credit Rating | “CRISIL AAA/Stable” by CRISIL, “CARE AAA” by CARE and
“Fitch AAA(ind)” by FITCH
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| Face Value | Rs. 1,000/- per Bond | |
| Issue Price | At par i.e. Rs. 1,000/- per Bond | |
| Minimum Application | 50 Bonds (Rs. 50,000/-) and in multiples of 1 Bonds (Rs. 1,000/-) thereafter | |
| 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 |
| Coupon Rate | 8.20% p.a. | 8.30% p.a. |
| Interest Payment | Annual | Annual |
| Interest Payment Dates | Every year on October 01, and on respective maturity | |
| Listing | Proposed on BSE Ltd. (“BSE”) and National Stock Exchange of India Ltd. (“NSE”). The Designated Stock Exchange for the Issue is BSE | |
| Trustee | SBICAP Trustee Company Ltd. | |
| Interest on Application Money | At the respective coupon rate on Bonds (subject to deduction of tax at source, as applicable) will be paid to the eligible applicants to whom the Bonds are allotted pursuant to the Issue on the amount allotted from the date of realization of the cheque(s)/demand draft(s) or 3 (three) days from the date of receipt of the application (being the date of submission of each application as duly acknowledged by the Bankers to the Issue) whichever is later upto one date prior to the Deemed Date of Allotment.
@ 4.00% p.a. (subject to deduction of tax at source, as applicable) on application money which is liable to be refunded to the applicants from the date of realization of the cheque(s)/demand draft(s) or 3 (three) days from the date of receipt of the application (being the date of presentation of each application as acknowledged by the Bankers to the Issue) whichever is later upto one day prior to the Deemed Date of Allotment. Such interest shall be paid along with the monies liable to be refunded
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