The Rs 500-crore issue of tax-free bonds by India Infrastructure Finance Company Ltd (IIFCL), which closed on Thursday last week, mopped up Rs 1,234 crore. The issue had opened in early October. IIFCL has exercised the option to retain oversubscription of up to Rs 2,000 crore.
Already, state-owned IIFCL had mobilised as much as Rs 2,963 crore through the private placement route.
“We now have a window of about Rs 5,800 crore of funds to raise, which will be done in two more tranches of public issues this fiscal,” Harsh Kumar Bhanwala, Officiating Chairman and Managing Director of IIFCL told
The Central Board of Direct Taxes had given the nod to IIFCL to raise as much as Rs 10,000 crore this fiscal through public issue of tax-free bonds.
In the first public issue of tax-free bonds, IIFCL had offered 8.26 per cent, 8.63 per cent and 8.75 per cent interest rates for the 10-, 15- and 20-year bonds, respectively.
Meanwhile, the Rs 750-crore tax-free bond issue by Power Finance Corporation is expected to remain open till November 11.
srivats.kr@thehindu.co.in