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NHB Tax Free Bonds Tranche II Offer - Mar 2014 (Apply)

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As we are closing-in for fiscal end, tax-free bonds issue is gearing up for last-mile run. We have another sudden announcement of tax-free bonds. Details of the same are as under:

National Housing Bank (NHB) is the wholly-owned subsidiary of Reserve Bank of India and is engaged in financing activities for housing finance sector. NHB is now coming out with its tax-free bonds Tranche II for a base size of Rs. 250 crore with a residual shelf limit of Rs. 1000 crore. These funds will be used as long term resources for its financial market activities. The issue opens for subscription on 07.03.14 and will close on or before 18.03.14. It is offering bonds of Rs. 5000 each in the form of Secured Redeemable Non-Convertible debentures having benefit under Section 10(15)(iv)(h) OF THE INCOME TAX ACT, 1961. Minimum application is to be made for 1 bond and in multiple thereof, thereafter. These bonds are available in demat as well as in physical mode, however, the trading will take place only in demat mode. Coupon rates for categories I, II and III (Non-Retail) is 8.25% for 10 yrs, 8.68% for 15 yrs and 8.65% for 20 yrs, and for category IV (Retail investors) it is 8.50% for 10 yrs, 8.93% for 15 yrs and 8.90% for 20 yrs.

The issue is lead managed by Edelweiss Financial Services Ltd., Axis Capital Ltd and RR Investors Capital Services Pvt. Ltd. Karvy Computershare Pvt. Ltd. is the registrar to the offer and IL&FS Trust Co. Ltd. is the bond trustee. These instruments are rates as 'CARE AAA' by CARE, 'CRISIL/AAA Stable' by CRISIL and 'ICRA/AAA (Stable)' by ICRA indicating highest degree of safety regarding timely servicing of financial obligations and carry lowest credit risk. Post allotment it will be listed on NSE.


Conclusion / Investment Strategy

Apply Aggressively

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Dec 11, 2019

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda, a freelance journalist

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

The National Housing Bank NCD March 2014 Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered NCD Analysts tells you if National Housing Bank NCD March 2014 worth investing. The National Housing Bank NCD March 2014 Note sets the NCD expectations in systematic way which tells you if National Housing Bank NCD March 2014 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in National Housing Bank NCD March 2014 by providing NCD recommendations i.e. subscribe, avoid and neutral.