| Dear Friends IRFC giving 8.20%p.a. & 8.30% p.a. for 10 & 15 yrs respectively which is Totally Free from Income Tax & wealth tax & its tradable in the market so u can exit anytime & specially when Interest rate in Market falls then u will get capital gain also by selling at that time.
INDIAN RAILWAY FINANCE CORPORATION LIMITED (A wholly owned Government of India Enterprise) Background & Highlights : Ø Financing arm of the Indian Railways Ø 100% shareholding held by Government of India Ø Notified as a Public Financial Institution under Section 4A of the Companies Act, 1956 Ø Registered as a NBFC-ND-IFC (Infrastructure Finance Company) with Reserve Bank of India Ø Consistently profit making Public Sector Undertaking Ø Rated „AAA‟ by CRISIL, ICRA and CARE Ø "Nil" Non-Performing Assets (as on 30.09.2011) Ø Funded rolling stock of book value of Rs. 69,843 crore (5,567 locomotives, 33,856 passenger coaches and 14,90,300 freight wagons) for Indian Railways (as on 30.09.2011). Ø Outstanding leased assets to Ministry of Railways stood at Rs. 43,158.17 crore (as on 31.03.2011), representing 92.44% of its total assets besides investments in fixed deposits of banks and long term loans to few other entities in railways sector such as Pipavav Railway, RailTel and RVNL. Ø Net worth of Rs 4,487.50 crores (as on 30.09.2011) Ø Net Profit after Tax of Rs. 485.20 crore for year ended 31.03.2011 compared to Rs. 442.69 crore for year ended 31.03.2010. Financials Highlights | (FIGURES IN CRORES) As on/For the year | 31.03.2007 | 31.03.2008 | 31.03.2009 | 31.03.2010 | 31.03.2011 | | Share Capital | 232.00 | 500.00 | 500.00 | 1091.00 | 1602.00 | | Reserve and Surplus | 1621.24 | 1925.76 | 1980.70 | 2314.47 | 2683.96 | | Share Application Money | 268.00 | - | 300.00 | - | - | | Secured Loans | 16341.94 | 19012.60 | 22600.25 | 27944.70 | 31256.74 | | Unsecured Loans | 5452.22 | 5085.97 | 4788.46 | 5663.88 | 6867.74 | | Net Block | 14.57 | 14.20 | 13.99 | 13.69 | 13.37 | | Current Assets, Loans & Advances | 1478.68 | 2150.87 | 1799.33 | 2254.90 | 1339.64 | | Total Income | 2288.92 | 2624.78 | 3024.78 | 3483.94 | 3841.65 | | Total Expenditure | 1677.21 | 1984.77 | 2367.05 | 2695.53 | 2943.30 | | Profit for the Year | 611.71 | 640.02 | 657.73 | 788.41 | 898.34 | | Profit Before Tax | 611.74 | 638.35 | 657.69 | 788.29 | 898.35 | | Net Profit After Tax | 398.70 | 421.51 | 180.79 | 442.69 | 485.20 | Pls also find attached herewith Ø Term Sheet, Ø FAQ's on NHAI Bonds Indian Railway Finance Corporation (IRFC) bonds to deliver high capital gains when rates fall
The Rs 6,300-crore Indian Railway Finance Corporation (IRFC) bond offering, which opens for subscription offers a good opportunity to investors to lock in funds at higher yields and earn tax-free interest income, according to wealth managers.
Apart from coupon rates in excess of 8%, IRFC bonds will start delivering high capital gains once interest rates start moving downwards, they say.
Forty per cent of the Rs 6,300-crore issue is earmarked for institutional investors, 30% for retail investors and high net worth individuals. The bonds will have differential coupon rates of 8.2% for 10 years and 8.3% for 15 years, say merchant bankers.
"The IRFC issue presents a good opportunity for investors to lock money in triple-Arated sovereign-like bonds at higher yields. Apart from high coupon rates and safety, these bonds will be very liquid because of the large float. Investors will easily be able to buy and sell these bonds on the exchange," said Raghvendra Nath, managing director at Ladderup Wealth Management.
According to Mr Nath, investors should take a long-term view on this bond issuance. These should be a part of the core fixed income portfolio, he said.
According to wealth managers, tax-free bonds - even if it bears a lower pay-out rate than G-Secs and corporate bonds - are good bets for investors in the current scenario as not many asset classes are generating near-8% risk adjusted (tax-free) returns. Despite 10-year G-secs and bank fixed deposits yielding 8.3% and 9.25%, respectively, wealth managers expect the bond to attract investments because of its tax-free status.
"An over 8% tax-free coupon rate is very much comparable to an investment product that delivers 12% pre-tax returns. This issuance is even better than bank fixed deposits, which are currently giving about 9% (pretax) returns," said Jaideep Hansraj, executive vice-president & business head at Kotak Wealth Management.
Economic Times dtd. 20.01.12 published that NHAI, PFC bond buyers set for a 10-12% gain at the time of listing as Both the issue got Tremendous response & closed the issue before closing date and same is expected in IRFC Bonds issue too.... Also, with interest rates expected to slide over the next few months, money managers are hoping to generate higher returns by selling these bonds at a relatively higher coupon rate.
In the event of a fall in interest rates, wealth managers expect 5-10% price appreciation on premature encashment of the bond.
Regards
Nikhil Vadia - 98197 55658
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