sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Indirect Tax »
 How is dividend income taxed Here’s all you need to know
 How is dividend income taxed Here’s all you need to know
 How is dividend income taxed Here’s all you need to know
 Several records missing from Income Tax department, CIC told
  Indirect tax evasion cases post a decline in FY18-19
 Income tax return revision: How many times can a return be revised? Find out
 CBDT notifies new I-T return forms
 Here are the key changes in tax rules to come into effect from today
 GST revenue growth in 2018-19 to match last 10 years’ indirect tax growth, says SBI report
 Things You Should Know Before Filing Your Income Tax Returns (ITR)
 All education loans do not get income tax benefits

IRFC tax-free bonds subscribed four times on day one
March, 12th 2016

Indian Railways Finance Corporation's ( IRFC) tax-free bonds were oversold, almost four times higher than planned. With this, the issuer marked the season's end although the issue would remain open for subscription till Monday next as the retail portion is not fully subscribed.

The company on Thursday received bids for Rs 9,452 crore against Rs 2,450 crore, the total issue size. However, the retail portion, which was 60% of the size, was not fully subscribed, and limited to 0.72 times till Thursday.

Earlier on Wednesday, another state-owned entity National Bank for Agriculture and Rural Development opened similar taxfree bond subscription but only to raise Rs 3,500 crore. It has so far received bids for Rs 14,072 crore, four times higher than the actual size. But, it too fell short of retail subscriptions, which are now at 0.82 times of the investment limit. Both bonds are offering rates at 7.29-7.64% with 10 and 15-year maturities.

"The residual retail limits would be over by next few days as the issue remains open," said Ajay Manglunia, executive vice president-fixed income at Edelweiss Finance. "There's no ebbing of investor interest. It is just that some equity investment options have taken away some retail money."

For instance, the government sold 5% stake in Container Corporation of India (Concor) through the Offer for Sale route. It too has oversubscribed tapping retail money. Also, investors are partially flocking back to equities with the Sensex rising since the budget announcements. "Residual retail limits do not suggest any ebbing of invest appetite but a question of temporary liquidity matter amid the government's disinvestment plans," said Deepak Panjwani, head of debt markets at GEPL Capital.

The government allowed the additional fund raising on condition that a higher portion of the issue is set aside for retail investors, who can buy up to 60% of these bonds compared with 40% in earlier issues sold this financial year.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions