HUDCO - Tax Free Bond Issue opens on 09-Jan-13 : Product Information

HUDCO - Tax Free Bonds Public Issue - Product Note.pdf Download this file


Highest coupon… last opportunity as benchmark G-sec yields already corrected

 

We believe the bond is a good investment option for a fixed income investor given its tax exempt status, higher coupon rate and issuance from a Mini Ratna government company. G-Sec yields which are a benchmark for determining coupon on tax free bonds have corrected by 15-20bps. New issues will be coming at lower coupon. Therefore HUDCO tax free bonds provides the last opportunity to lock in higher rates.  

 

Term Sheet

Issuer

Housing And Urban Development Corporation Ltd

Issuance of Bonds

The Allotment of the Bonds will be in a Dematerialised form as well as physical form

Put Call Option

None

Options

Series 1

Series 2

Tenor

10 Years

15 Years

Interest Frequency

Annual

Annual

Coupon Rate (%) for Category I, II, III & V

7.34%

7.51%

Additional Coupon Rate for Category IV*

0.50%

0.50%

Aggregate Coupon Rate for Category IV*

7.84%

8.01%

Effective Yield for Category I, II, III

7.34%

7.51%

Effective Yield for Category IV

7.84%

8.01%

 

 

 

 

 

 

Cheque/DD Details

For Resident Applicants :

 “HUDCO Tax Free Bonds 2012 – Escrow Account - R

 

FII and Eligible NRI Applicants :

 “HUDCO Tax Free Bonds 2012 – Escrow Account - NR”.

 

 

Hence, for a retail investor, it is advisable to lock the current coupon rates. Since the interest income on the bond is tax exempt, the pre-tax yield works out to 11.34% and 11.60% for 10years and 15years respectively, which is higher compared to 8-9.5%, offered on bank FD or other stable bonds. Hence bond also scores over other fixed income instruments.

 


 

 

 

Trading Holidays 2013 List- NSE, BSE & MCX

List of trading holidays for NSE/BSE-2013:

1Republic Day 26-JAN-2013SATURDAY

2 Holi (2nd Day)*27-MAR-2013WEDNESDAY

3 Good Friday 29-MAR-2013 FRIDAY

4 Ram Navami* 19-APR-2013 FRIDAY

5 Mahavir Jayanti 24-APR-2013 WENESDAY

6 May Day 1-MAY-2013 WENESDAY

7. Rmazan ID( idu’l fitr )*                 9-AUG-2013         FRIDAY

     8                      Independence Day                15-AUG-2013       THURSDAY

     9                       Ganesh  Chaturthi *              9-SEP-2013       MONDAY

    10                         Gandhi Jayanti             2-OCT-2013     Wednesday

    11                    Idu’l Zuha  (Bakri ID )*              16-OCT-2013    WEdNESDAY

     12                   Diwali – Balipratipada *              4-NOV-2013      MONDAY

     13                           Moharum *              14-NOV-2013     THURSDAY

    14                           Christmas               25-DEC-2013    WENESDAY

* Muharat  Trading will be conducted on Sunday , November  03,2013. Timing of Muharat trading  shall be notified subsequently. 

List of trading holidays for MCX-2013:

1

Id-E-Milad *

25-JAN-2013

FRIDAY

2

Republic Day

26-JAN-2013

SATURDAY

3

Holi (2nd Day)*

27-MAR-2013

WENESDAY

4

Good Friday

29-MAR-2013

FRIDAY

5

Ram Navami*

19-APR-2013

FRIDAY

6

Mahavir Jayanti

24-APR-2013

WENESDAY

7

       Maharashtra Day / May Day

(Labour Day)*

1-MAY-2013

WENESDAY

       8

                       Buddha Pornima

                  25-MAY-2013

        SATURDAY

       9

                    Rmazan ID( idu’l fitr )*

                 9-AUG-2013

         FRIDAY

      10

                      Independence Day

                15-AUG-2013

       THURSDAY

      11

                       Ganesh  Chaturthi *

              9-SEP-2013

       MONDAY

      12

                         Gandhi Jayanti

             2-OCT-2013

     WENESDAY

      13

                    Idu’l Zuha  (Bakri ID )*

              16-OCT-2013

    WENESDAY

     14

                     Diwali -Laxmi Puja #

              3-NOV-2013

      SUNDAY

     15

                   Diwali – Balipratipada *

              4-NOV-2013

      MONDAY

     16

                           Moharum *

              14-NOV-2013

     THURSDAY

     17

                           Christmas

               25-DEC-2013

    WENESDAY

  *Evening Trading  Session ( from 5.00 pm to 11.30/11.55 pm)  will be conducted on these days.

· #Muhurat Trade Timings , on this holiday , shall be notified subsequently .

Note that on MCX, on many holidays the evening session would be open from 5pm. All such days are marked with *.

13 Stocks you can count on : IIFL

 

IIFL

The Lucky 13

The second half of 2012 has brought hope of a promising 2013 for equities. Also, with 2012 behind us, the supposed ‘end of the world’ predictions would hopefully have been put to rest. Pessimists though, always manage to find a bagful of excuses to remain fearful and depressed. Doomsday predictors may turn to the so called ominous number 13 in the New Year. However, you may be surprised to know that ‘13’ is considered lucky by many. In reality, it’s a case of seeing the proverbial glass ‘half full’ or ‘half empty’. We see good reason to be hopeful for equities in 2013. Although there are headwinds to the India story, the positives will likely outweigh negatives in the coming 12 months. We believe government action will continue. The worst looks over for the INR and global growth and easing policies will support portfolio flows into India. A key market trigger is the peak out of the interest rate cycle. We expect a Repo rate cut of 25 basis points in the January 2013 review meet. There is a case for a 75-100bps rate cut in 2013. Nifty valuations are reasonably placed at 14.5x FY14E and the earnings downgrade momentum is waning. We recommend 13 growth stories for 2013 and beyond, in our special theme report titled ‘The Lucky 13’.

Wishing you and your loved ones a Happy and Prosperous New Year!

Buy recommendation summary

CompanySectorCMP (Rs)18-month Target (Rs)Upside (%)FY12-15 PAT CAGR (%)P/E (x) FY15ERoE (%)EV/EBIDTA (x)
FY15EFY15E
ACC**Cement1,4321,75522.618.512.421.57.1
DEN NetworksMedia20029045112.819.313.67.3
Dr Reddy'sPharma1,8342,35828.621.813.226.88.1
Financial TechIT1,1381,51032.7(18.7)*16.610.418.8
ITCFMCG2873532318.321.840.515.6
Petronet LNGOil & Gas15820831.912824.15
United SpiritsBreweries1,9532,40022.968.531.59.717.7
WiproIT39749524.712.812.119.77.4
WockhardtPharma1,5622,08933.7171234.27.5

*FY12 included a one off large stake sale of MCX holding of Rs2.5bn
** Calendar year ending.

Financials
CompanySectorCMP (Rs)18-month Target (Rs)Upside (%)FY12-15 PAT CAGR (%)P/BV (x) FY15EROA (%)ROE (%)
FY15EFY15E
HDFC BankFinancials68585024.119.73.41.614.5
ICICI BankFinancials1,1591,50029.423.51.71.721.7
LIC Housing FinFinancials29739031.325.21.71.821.5
Shriram Trans FinFinancials7549502611.41.82.518.6

Source: India Infoline Research

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