Monday, March 11, 2013

JN Port Trust Tax Free Bonds 2012-2013

Jawaharlal Nehru Port Trust, a Government of India undertaking, has come out with Rs 500 crore public issue of tax free secured redeemable non-convertible bonds. The company provides various services and facilities pertaining to the handling of diverse types of cargo. It also provides other value-added port services like consumer freight stations and facilitation of rail handling. For those individuals who are in the highest tax bracket, this is a good source of tax free secured interest income.

Opening and Closing dates:

The issue shall open on 11 March, 2013 and shall close on 15 March, 2013.

Face Value:

The face value is Rs 1000 per bond and the minimum application for subscription in retail segment is Rs 5,000 with maximum at Rs 10 Lakhs in increment of Rs 1000.

Available options:


Interest Rate %
Period
Retail
       HNI / Corporate
10 yr
7.32%
6.82%


Those investing up-to Rs 10 lakhs are retail investors and above that are High Net-worth Investors (HNIs) for the purpose of this issue. These bonds carry a step-down clause - the coupon gets reduced by 50 basis points for retail investors once the bonds get listed or the ownership of bonds changes hands. Interest would be paid annually for all categories.

Brickwork has rated AAA and CARE AAA to the bond issue indicating high grade safe investment. These bonds would be listed and tradable on NSE and BSE. No tax would be deducted at source on income and the allotments would be on first come first serve basis.

The issue can be subscribed in DMAT as well as physical form.

National Highways Authority of India, Housing and Urban Development Corp, National Housing Bank, Indian Railways Finance Corp, IIFCL, Ennore Port, Jawaharlal Nehru Port and Dredging Corporation are among companies permitted by the government to sell tax-free bonds under Section 10 (15).


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