The Government-owned Housing and Urban Development Corporation has come out with a tax-free bond issue amounting to Rs 750 crore with an option to retain oversubscription up to Rs 4,809.20 crore.
The bonds are in the nature of secured, redeemable, non-convertible debentures.
The minimum application size for the issue is five bonds of Rs 1,000 each and in multiples of one bond thereafter.
The issue opens on September 17 and closes on October 14. The bonds will be listed on the BSE.
A coupon rate of 8.14 per cent, 8.51 per cent and 8.49 per cent, payable annually for 10, 15 and 20 years respectively is offered for qualified institutional buyers, corporates and high networth individuals applying for bonds of over Rs 10 lakh.
An additional 0.25 percentage points will be given to retail individual investors subscribing up toRs 10 lakh. Forty per cent of the issue is reserved for retail investors.
CARE and India Ratings have assigned a high degree of safety rating regarding timely servicing of financial obligations.
The bonds will be issued in both physical and dematerialised forms.
Meanwhile, Rural Electrification Corporation which came out with a tax-free issue for Rs 1,000 crore on August 30, with a green-shoe option of Rs 2,500 crore, has closed its offer on Monday ahead of the closure date of September 23, as it had been oversubscribed.