PTC tax saving infra bonds subscribed more than 300%

Business

oi-Sneha

By Sneha B K

Published: Friday, March 30, 2012, 15:46 [IST]

PTC India Financial Services (PFS) long term tax saving secured Infrastructure Bonds have been subscribed more than 300%. The company opened its second ling term infrastructure bonds offering of Rs 50 crores with an option to retain over-subscription for issuance of additional infrastructure bonds.

The offer was open from December 30, 2011 under private placement and carries benefits under section 80CCF ofIncome Tax Act 1961 and allows retail investors to avail tax saving by investment of Rs 20,000 during FY 2011-12, over and above the Rs 1 lakh deduction available under section 80C. The offer was closed Mar. 27, 2012 and the companyhas raised around Rs 1.62 billion through the issue.

The bonds carry an interest rate of 8.93% p.a. On option I and II for 10 year bonds with an option for buyback after 5 years and 9.15% p.a. For option III and IV for 15 year bonds an option for buyback after 7 years. The current issue was rated BWR AA from Brickwork Ratings, A+ from CARE and A+ fro ICRA.

Shares of the company on Friday gained Rs 0.95, or 6.38%, to trade at Rs 15.85 at 3.30 pm IST. It had reached intraday high of Rs 16.40.

About PFS
PFS is a non-banking finance company promoted by PTC India Ltd. Company also offers an integarted suite of financila services with focus on infrastructure development, which includes debt financing and making equity investment in, private sector Indian companies in the entire energy value chain.

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