Infrastructure Development Finance Corporation has announced that it is coming up with it’s Second Tranche of Bond issue starting 17th Jan – 4th Feb.
Face Value : Rs 5000/- each
Interest Rate : 8%
Interest Frequency : Annual or Cumulative. (You may opt for the option you like)
Buy Back date : 5 years from the Deemed Date of Allotment.
Best feature : Tax Benefit (Check out the PDF file for more) (Check PDF)
IDFC Plans to collect an aggregate amount not exceeding Rs 29289.64
million (for the “issue”) – Tranche 2.
Post issue the bonds would be listed on BSE and NSE. Buy back is allowed after the required 5 years lock in period i.e. to avail tax benefit you will have to stay invested in the bonds for a minimum of 5 years. The maturity period of bonds is 10 years; however, you can opt for buy back option and redeem your amount after 5 years.
Banks are now offering interest rate between 8 – 9% on FD which is more liquid but these bonds are best for Tax benefits.
Contact Harish Soneji to subscribe to this bond – +91 9920328954
Read IDFC infrastructure bond – FAQ’s on OneMint.
Know more about this Issue – Download PDF File.
How to apply for IDFC infrastructure bonds?
Have more queries on this. Please feel to comment we will try our best to help you 
Know more about : IDFC Infrastructure Bonds Tranche 3
{ 28 comments… read them below or add one }
Chirag,
Actually, these people seem to be striking the hammer just when the iron is hot.
The financial year-end is nearing by and people are likely to tap these special tax-incentivised bonds to gain IT exemption to the extent of Rs. 20,000 limit.
Nice informative article Chirag!
Yes Indeed. These bonds are good for tax saving other wise FD offers you better options.
Thanks for dropping by Viral.
Nice information Chirag, thanks for sharing.
Thanks Khalid.
Thanks for dropping by!
Btw – what’s your take on these bonds? Subscribe or no ?
I have subscribed to tranche 1 issue. Can I go for this new issue ?
Is it that worth that I should subscribe ?
@ M. Gopal – How much did you invest in tranche 1 ? If you have invested less than 20K then balance amount you can invest now to avail tax benefits u/s 80 CCF. How ever you can invest more amount now just to gain interest rate benefit.
I had subscribe for 20,000 rs last time. So i wont get tax benefit again right ?
Yes Mr. Gopal you won’t get the benefits again.
Can we buy this bond in physical format, as I do not see this option anywhere. Also which is better plan in these bonds
Yes you can buy this bond in Physical Format.
The details given in this PDF File : http://www.investologic.com/wp-content/uploads/2011/01/IDFCInfraBonds.pdf
I personally feel buy the bond is DMAT form is a better option compared to physical.
I didn’t exactly get what you string to say by – “which is better plan in these bonds” are you taking of series 1 or series 2.. ? Then Series 2 is better as you get interest which is compounded annually.
Dev: Chirag is absolutely right. For getting these bonds in physical format , leave the “Depository Participant” section of the application blank and tick mark the “BONDS IN PHYSICAL FORMAT” box. Near the box a reference has been made to Instruction No.28 of the form which is available on the inside pages and can be summarised as follows.
Documents needed:
Self attested copies of
PAN card(compulsory)
Proof of address(see valid documents)
Cancel cheque form applicants account
Also, you have asked about the plans. These bonds have two options
Option 1 :where you get yearly payouts at 8% per year and on maturity you will only get the original amount back.
Option 2 :where there will be absolutely no payout of interest. However when you redeem your bond of say Rs. 5000 value, after 5 yrs you get Rs. 7350 and on redemption after 10 yrs you get Rs. 10800 for the same Rs.5000 bond.
So depending on your current and future needs you can select a plan.
All these details are available on the Application form.
for purchase or any other query,feel free to contact
Inderjeet Bhatnagar
Goldleaf Investments
REC is a small issue compared to IDFC.
Heard LNT is also coming up with such bond?
Yes but there is no official date come up and no specifications have come up yet.
What is the redemption process after 5 years? Is there any form format for the same?
Varies according to the way you buy it? Physical or Dmat !
Buying by physical form ( way )
There are 2 ways out :
1) It will be listed in the stock markets – you can directly sell in markets.
2) You can surrender the Bonds to IDFC and they will buy back from you!
I have bought in physical form with buyback option.
As I am a novice so I have the following 2 queries
1. Do I need to open demat account for buyback after 5 years? If not what is the exact process?
2. Though I have selected buyback, is it compulsory to buyback on 5yrs and 1 day or I can keep it for any period till 10 days getting proper interest.
Thanks
Sourav
Surav you no need to open demat account at time of redemption and u select buyback option it is not compulsory to redemption after 5 yrs u can keep it for 10 yrs also its just an option but if u not select then its automatically go for 10 yrs.
There are 2 ways out :
1) It will be listed in the stock markets – you can directly sell in markets.
2) You can surrender the Bonds to IDFC and they will buy back from you!
Hi,
Can any one tell me how to get this in Panchkula
Tranche 3 is open now – till March 16th. Enough time to get a Demat account opened and place order online.
Otherwise I would just use justdial to pick any local investment agency that can help.
To,
The Manager,
IDFC,INDIA.
Sub:Query Of BONDS
Sir! I have submitted form for IDFC Bonds amount 1500/Rs on 3rd February2011, but till now I did not get original Bonds. (APPLICATION NO.8439510)Dated:03/02/2011.
Please verify it and send Bonds as soon as possible.
Thanking you.
Nagesh
This is not IDFC’s official website. You need to contact IDFC for the same. This is a private website.
R/SIR,
I WANT TO INVESTMENT RS 20000 (TWENTY THOUSAND) IN THE IDFC BOND FOR TAX SAVING.
KINDLY SUGGEST TO ME .
REGARDS,
MANOJ KUMAR DUBEY
MOB 9978443491
Tomorrow is last day to subscribe to IDFC Tranche 3
You may go for PFC. — http://www.investologic.com/bonds/pfc-infrastructure-bonds/
I would like to buy one infrastructure bond for current financial year , Please advice
You can check this link for more – http://www.investologic.com/bonds/idfc-infrastructure-bonds-tranche-1-2011-12/
You can contact your financial adviser or get in tough with harish@investologic.com and he will help you procuring the bond.
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