The financial year 2012-13 is coming to an end and there are a mere 20 days left before it ends. There is a spate of tax free bond schemes on offer with 7 of them being on offer and closing during the week and one of them opening and closing during the week. These bond schemes are quite similar in nature where the period is typically 10 years, 15 years and 20 years in the case of Hudco.
The issues already open and closing during the week are as follows: –
| 1. Indian Railway Finance Corporation | closes on 13th March |
| 2. India Infrastructure Finance Company Limited | closes on 15th March |
| 3. Ennore Port Limited | closes on 15th March |
| 4. Dredging Corporation Limited | closes on 15th March |
| 5. Jawaharlal Nehru Port Trust (opens on 11th March) | closes on 15th March |
| 6. Power Finance Corporation Limited | closes on 15th March |
| 7. Housing & Urban Development Corporation Limited | closes on 15th March |
| 8. Rural Electrification Corporation Limited | closes on 15th March |
All these issues are offering interest where there is an additional 0.50% payable to retail individual investors applying for bonds upto Rs 5 lacs. The coupon rate varies from 6.82% -6.88% for the 10 year series for AAA bonds and 7.03% for the AA bonds from Hudco. The 15 year bonds from Hudco offer a coupon rate of 7.19%. This week is the last week for all investors looking to invest in tax free bonds from the primary market in 2012-13.
The FM has announced similar bonds of Rs 50,000 crs in the next financial year as well.
Coming to the equity primary market an issue from Repco Home Finance Limited opens this week on Wednesday the 13th of March and closes on Friday the 15th of MArch. The company is a subsidiary of the government owned Repco Bank Limited and is making an issue for 157.20 lac shares in a price band of Rs 165-172. The issue would garner Rs 259-270 crs in the above price band. The company is in the business of home finance as the name suggests. The issue would be analysed in the next few days.
