HUDCO – A Govt of India owned company engaged in housing finance has come up with an issue of tax free bonds Dec 2013.
This is second tranche issue and first tranche was issued last month.
Imp dates:
- Issue open date: 02-12-2013.
- Issue close date:10-01-2014.
Interest rates – for category IV investors applying for Rs. 10 Lakh or less amount:
| Series | Series 1B | Series 2B | Series 3B |
| Tenure | 10 Years | 15 Years | 20 Years |
| Coupon Rates | 8.76% | 8.83% | 9.01% |
Credit rating : Credit rating of HUDCO is AA+.
Annual interest received will be free from income tax and though rating is AA+ ..being Govt company which focuses economic as well as social issues ..9.01% for a period of 20 years seems to be a good bet if any one is solely looking for annuity like income option…but If any one is looking for just trading purpose or listing gains then this issue is not a great choice.
Also View: NTPC Tax Free Bonds Dec-2013.
