IIFCL raises Rs.1,150 cr through tax-free bonds
- BJP rubbishes Geelani's claim, calls separatist leader's 'Modi emissary talk' as 'false and mischievous'
- Mamata Banerjee govt saving those involved in Saradha scam: Rahul Gandhi
- Modi's jibe at Mulayam: âBalaatkariyon ke liye Netaji ka mann ekdum mulayam haiâ
- Malaysian Airlines MH370: 4 questions about missing plane answered
- IPL 7 Live Cricket Score, RCB vs MI: MI struggle to 115/9 against RCB
With four days to go before the close of the public issue of its tax-free bonds, India Infrastructure Financial Company (IIFCL) has raised about R1,150 crore.
IIFCL's first tranche of the bonds is pegged at R1,500 crore with a green-shoe option of R9,215 crore. Merchant bankers involved in the deal said public and private banks are buying the largest chunks and that there's virtually no retail interest.
IIFCL, which raised R785 crore through private placement of bonds, will further raise R1,715 crore through this route, a company source said. "Depending on the conditions, we could issue another tranche of tax-free bonds before March and a private placement thereafter," an IIFCL executive said.
Earlier, REC fell short of its aim to raise R4,500 crore through tax-free bonds, attracting just R2,100 crore. Power Finance Corporation (PFC), which was targetting R1,000 crore with a green-shoe option of R3,590 crore, extended the issue by a week but raised just R709 crore. So far, public and private banks have bought over R600 crore of the IIFCL issue with more banks like PNB and Corporation Bank lining up to buy the paper.
The retail segment contribution was under R250 crore. This is the third tax-free bond issue since REC kick- started the season in December. In all, 10 infrastructure companies are expected to issue such bonds before the end of FY13. "The bonds have come in quick succession. In one quarter, these companies are aiming to raise over R53,000 crore and people in the retail segment do not have enough liquidity," a merchant banker said.