IRFC extends tax-free bond sale by a week on dull retail response
While companies have bought around 50% of the issue, the response from retail and high net worth individuals has been dull, merchant bankers said. Vedanta’s subsidiary Cairn India was the highest contributor with an investment of R500 crore. L&T Finance has invested R300 crore, while ICICI Bank has put in R250 crore and Indiabulls Real Estate and Sidbi about R200 crore each.
Meanwhile, Housing and Urban Development Corp (Hudco), which had also extended its sale of bonds by a week to February 1, has raised R1,416 crore so far. The company had pegged the issue at R750 crore with the option to retain up to R5,000 crore. The company has attracted more retail and high net worth investors than other companies since being a lower rated paper it was able to offer 12-13 basis points more on the coupon than the rest.
So far, not a single company has been able to raise the target amount by issuing tax-free bonds. India Infrastructure Finance Company (IIFCL) raised R2,850 crore, the highest amount picked up among all the five issuances so far, as it was able to
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