L&T Infrastructure Bonds Review

by Manshu on October 18, 2010

in Fixed Deposits

Close on the heels of the IDFC Infrastructure bonds – L&T is also issuing infrastructure bonds beginning October 15th 2010, and closing on November 2 2010.

L&T Bonds: Tax Saving Infrastructure Bonds

These are classified as infrastructure bonds under Section 80 CCF which means that investing in them will reduce your taxable income by Rs. 20,000.

This increases your effective yield because along with the interest you earn on these infrastructure bonds, you save on tax as well.

These bonds are good for a maximum of Rs. 20,000 as far as the tax saving aspect is concerned, so if you buy bonds worth Rs. 30,000 and nothing else, even then the maximum you can reduce from your taxable income is Rs. 20,000 because that is the cap on tax benefits on infrastructure bonds.

L&T Infrastructure Bonds Features

There are 4 series of L&T Bonds, and though these bonds have a term of 10 years, there is an option of a buyback after 5 years or 7 years.

The interest rates, and effective yields of different plans are shown below:

Series Tax Bracket 1 2 3 4
Face Value —- Rs. 1,000 Rs. 1,000 Rs. 1,000 Rs. 1,000
Interest Payment —- Annual Cumulative Annual Cumulative
Interest Rate —- 7.75% 7.75% 7.50% 7.50%
Maturity —- 10 years 10 years 10 years 10 years
Buyback in years —- 7 years 7 years 5 years 5 years
Yield on Buyback 30.9% 15.23% 13.59% 17.20% 15.75%
20.6% 12.31% 11.36% 13.42% 12.58%
10.3% 9.86% 9.44% 10.23% 9.86%

L&T Bonds Minimum Investment

The minimum investment needed for you to invest in these bonds is Rs. 5,000 because you have to apply for a minimum of 5 bonds, and the face value of each bond is Rs. 1,000.

Open and Close Date

Subscription opened on October 15th, and will close on November 2nd 2010.

Credit Rating

The L&T bonds have been rated CARE AA+ by CARE and LAA+ by ICRA which indicate high credit quality and that the rated instruments carry low credit risk.

How can you invest in the L&T Infrastructure bonds?

You can invest in these bonds either in the physical form or electronically through brokers like ICICI Direct. You can buy a form through one of the several agents across the country and invest in it through them as well.

Here is a list of banks listed on their website that can give you more information as well:

  • Axis Bank
  • DBS Bank
  • HDFC Bank
  • HSBC Bank
  • ICICI Bank
  • IDBI Bank
  • ING Bank
  • SBI Bank

They also have this cool link on their special website for this bond where you can enter in your contact details and they will contact you and help you.

If any of you do decide to contact them then I am really interested to know your feedback because I tried to get in touch with the numbers given in the IDFC website, and tried at least 10 times to no avail. I’d like to know if this is any better.

Tax on interest earned from the L&T Infrastructure bond

The interest itself is not tax free. It’s only the Rs. 20,000 you get reduced from your taxable salary that helps save tax.

L&T Infrastructure bonds to list on NSE after 5 years

The Bonds are proposed to be listed on NSE, and can be traded after the initial 5 years lock-in period. After this lock-in period, the holders can also pledge the Bonds with banks for availing financial assistance.

You don’t need a demat account to invest in these bonds

L&T will offer you the option to hold the Bonds either in Dematerialized or Physical Certificate form.

NRIs can’t apply in the L&T Bonds

Non-resident investors including NRIs, FIIs and OCBs are not eligible to participate in the Issue.

Conclusion

These were some salient features of the L&T bond issue, and I hope you found this useful in order to make a decision on whether you want to opt for them or not. Keep in mind that IDFC has a similar issue running, and if you have already applied for that then you won’t get any additional tax benefit (over Rs. 20,000) by applying for this issue as well.

If you have any questions, leave a comment, and the community here will try to answer them for you.

Click here to read about the IDFC bond issue

Click here to read about the SBI bond issue

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{ 163 comments… read them below or add one }

Anurag February 9, 2011 at 9:29 pm

Hi

I have purchased L&T infrastructure bond. As reported above, i had mailed and got the scanned copy of the bond. But i have not got the actual hardcopy till now. Have all the people got the hardcopy of the bond posted on their addresses.
What should i do.
I think i would need the hardcopy when i want to sell the bond after 5 years.

Reply

SREENIVAS January 14, 2012 at 3:29 pm

I have applied for Bonds 2011 B I am not able to get the allotment adivice when I put application No &sumit app No goes off but doen’t ope pl clarify

Reply

santosh February 11, 2011 at 7:13 pm

Hi, let me know how can I purchase L& T Infrastrecture bond online.

Reply

Vishal Rochlani February 12, 2011 at 11:31 pm

Dear Santosh,

As per my understanding, you cannot apply this Online. You will have to download the form from the website http://www.ltinfrabond.com/. Fill it up and send to the collection centre or courier to them. If you want the physical forms then do let me know, I will arrange from my Broker. You can contact me for the same.

Bes Regards,

Vishal Rochlani
9022680160 / 9969454596

Reply

Birendra Kumar February 14, 2011 at 11:35 pm

hello santosh, let me know ur address, i mayhelp u out ur queries abt L & T bonds

Reply

Dr B S Patil February 12, 2011 at 6:18 pm

I want to invest please send me the application form

Reply

kunal February 13, 2011 at 11:10 pm

if anyone get information abt l&t infra bonds .contact kunal only for pune…07709999567

Reply

Manoj Kumar Jaiswal February 14, 2011 at 10:07 pm

Dear
Dr B S Patil

Regarding to investment in L&T Infrastructure Bond.
Please provide me your E-mail id i ll revert you back.

Reply

ANAND A NISHCHAL February 24, 2011 at 9:21 am
Rahul Prakash December 6, 2011 at 2:00 pm

I want to invest in L&T infrastruture bond. My contact number is 087544-93514

Reply

Dr B S Patil February 12, 2011 at 6:20 pm

i want to invest in infrostrecture bonds on line intimate me procedure

Reply

A. K. Singh February 15, 2011 at 7:01 am

Just give me your mailing address and mob. no. so i can assist you for L & T bond.
A.K.Singh
9311099558
firne_shine_india@yahoo.in

Reply

Vishal Rochlani February 13, 2011 at 10:58 pm

Dear Dr. B.S. Patil,

Pl. contact me on my Mobile No. or pl. provide your contact details for further action.

Best Regards,
Vishal Rochlani
9022680160 / 9969454596

Reply

kunal February 13, 2011 at 11:09 pm

if anyone get information abt l&t infra bonds .contact kunal only for pune…

Reply

rishiraj February 15, 2011 at 11:35 am

IIFCL infrastructure bonds & L&T infrastructure bonds

SECTION 80CCF.

Tax exemption upto Rs.6000 .

ISSUE CLOSES – 6TH MARCH 2011 & 7th MARCH 2011

FOR DETAILS & SUBSCRIPTION IN PUNE CONTACT ON

9762847432

Reply

Ranjan Seal February 17, 2011 at 10:06 am

Hi,
I am interest to purchase L&T infrastructure bond. Please send me a form

Reply

A K Singh February 17, 2011 at 10:29 pm

please send me your postal address and your mob. on my id or contact me on 09311099558. A.K.Singh

Reply

Vishal Rochlani February 18, 2011 at 2:49 am

Dear Mr. Ranjan,

Kindly provide your contact Details, so I can arrange the same from my Broker.

Thanks,
Vishal Rochlani
9022680160 / 9969454596

Reply

Ankit Jain February 17, 2011 at 12:46 pm

Thanxs 4 sbi bond information.I am planning to invest 35 thousand in it for 15 years.My question is what is the benifit of listing it in sensex(i am a new invester)

Reply

A K Singh February 17, 2011 at 10:34 pm

Just invest and wait for the listing and open it in the market. for apply please give me you postal address and mob. no. or send me the sms on mob.9311099558 A.K.Singh

Reply

Manshu February 18, 2011 at 9:31 am

Liquidity as you will be able to buy and sell even before maturity.

Reply

N.Sivakumar February 18, 2011 at 12:32 am

Dear Sir,

I have purchased the L&T Infrastructure Bond by paying Rs 20,000 (ICICI Cheque No: 34166, Dt: 30.10.2010) , which got cleared from my Bank Account on 13/11/2010. Unfortunately, i have misplaced the counterfoil slip of the Application, due to which i don’t have any idea of my application number.

Also, i haven’t received the Soft / Hard (Original) Copy of the Infrastructure Bond till date.

Kindly let me know, what i need to do, to get both “Soft / Hard copy”?…

Please help me…..

Regards. N.SIVAKUMAR.
431 C, Pocket 2, Mayur Vihar, Phase – 1, Delhi -110091.

Reply

Inderjeet Bharnagar February 18, 2011 at 5:27 am

Ankit: The most direct advantage of having a security listed on an exchange is that it enables a fair price discovery. On listing everyone will have the option of buying the bonds at the prevailing prices, which in turn will be dictated by the then prevailing interest rate enviornment.

But since you are inesting with a long term horizon of 15 years, this should not concern you as your yearly interest payments will be unaffected by any fluctuations in the interest rates.

Please do note, that investment in SBI retail bonds 2011 is not exempt for Tax deduction under any section of the IT act.

For any queries feel free to contact:

Inderjeet Bhatnagar
Goldleaf Investments
(022)6550 4550

Reply

Manshu February 18, 2011 at 9:12 am

Thanks for that response Inderjeet.

Reply

kaushik das February 19, 2011 at 7:44 am

Please let me know whether L&T is bound to buy back this infrastructure bond after five years if I opt for it. If so, what price they would offer ? i.e, at face value or at discount rate?

Reply

Manshu February 20, 2011 at 5:15 pm

Yes there is an option to buyback after 5 or 7 years. If you choose for annual interest then at face value; if you choose cumulative interest then they will cumulate interest at 8.30% per annum and pay that to you.

Reply

Madhusudhana Rao February 24, 2011 at 1:07 am

I want to take L&T infrastructure bonds in New Delhi for Rs. 20,000/- , could you please guide me how to proceed and whom to contact to get the application.

Thanks in advance
Madhusudhan

Reply

vandana sharma March 13, 2011 at 11:00 pm

I have invested Rs. 20000/-in Infrastructure Bond 2010A Series, My Application no. is 18142515 , Allotement Advice no. is 003979 but till date i have not recived my bond hard copy.
vandana sharma
Mob. No. 09413116880
SR-3 J N V Rampura Neemuch MP
458118

Reply

Himangshu March 23, 2011 at 7:58 am

Hi Ms. Vandana,
Did u opt for Demat form or physical?

Regards,
Himangshu

Reply

yoginder singh March 24, 2011 at 11:01 pm

hai,
i have applied for l&T Infracture 2011 bond with application no.1108804 . but till date i have not recive aney commmunication from u
kindely update me
thanks &regards

yoginder singh
mobile 9914499835

Reply

Manshu March 27, 2011 at 9:24 am

This is not the L&T website. Please talk to your agent or broker.

Reply

Chittaranjan Das March 27, 2011 at 4:56 am

Dear Sir,
On 25.10.2010 I purchased an Infrastructure Bond for Rs. 20,000.00 for saving Tax. My IPO Application No. 71041726 and transection No. 2610325135, Dt.25.10.2010. Till today I have no document with me that I have purchased a Bond with you neither in hard copy nor in any web site. I should have at least some authentic document.
Please do needfull.
Thanking you.

Yours faithfully,
Chittaranjan Das.

Reply

Manshu March 27, 2011 at 9:02 am

This is not L&T’s website – please talk to your agent or bank to help you out.

Reply

Krishnaswamy March 28, 2011 at 3:38 am

Hi

I have invested 20k in L&T Infra Bonds through ICICI Bank in T.Nagar, Chennai about a Month back. Yet to receive the Bonds. What do i need to do now please?

Reply

Samirmohammad F Chhipa May 1, 2011 at 7:31 am

I have purchased the L&T Infrastructure Bond in 2010(Application No : 28959675,Allotment advice no: 037982)and i was received allotment advice, but in Allotment advice my name is change from SAMIRMOHAMMED F CHHIPA to AMIRMOHAMMED F CHHIPA . now how to correct the above probleme and till date i have not recived my bond hard copy.

Reply

nitesh chandra mishra June 17, 2011 at 12:23 pm

Dear sir,
i have applied for l&T Infracture 2011 bond with application no.16222244.and app advice no.481685.and folio no.is 10175046. but you entered the wrong address .kindly change the address is given below
nitesh chandra mishra
U-63/21, DLF City, Ph-3 , Gurgaon , HARYANA
Pin Code- 122002

kindely update me
thanks &regards

nitesh chandra mishra
mobile – 9810280063

Reply

Ashok Mittal September 28, 2011 at 11:32 am

N 5 series bond of L&T are available in the open market at about INR 980. How much will be the yield or interest in this case

Reply

Manshu September 28, 2011 at 4:20 pm

Hey Ashok – The Edelweiss website is a good place that shows you the yields and everything and is easy to navigate. Here use this link – it shows a yield of 10.84%

http://www.edelweiss.in/Debt/DebtSnapshot.aspx?cn=L_TFINANCE-N5

Reply

anil kumar December 13, 2011 at 9:53 pm

i like to buy L & T infrastructre bonds for r.s 20,000 , kindly help me out

Reply

Dr Binod Kumar Acharya December 29, 2011 at 8:07 pm

Ihave bought the L&T infrastucter bond last year but nowI have changed my place of staying from Berhampur to Aska.Can you help me to enter my new address.

Reply

Tarun kumar Ghosh February 22, 2012 at 4:01 pm

I’m an insurance agent.I wanna sell infrastructure bond of L&T. How can I get this agency???

Reply

jitin nair March 22, 2012 at 2:23 pm

I have applied for l&T Infracture 2012 bond with application no.11743010 in mid of january 2012 but i have not received my bond certificate yet.

Reply

sunil deshmukh March 30, 2012 at 7:30 pm

i have received a physical L&T Infra bond with mistake in my name. How i can correct this?
sunil deshmukh 9922404877, pune

Reply

Ramesh chandra pathak June 4, 2012 at 1:49 pm

Dear Sir,

I have purchased the L&T Infrastructure Bond by paying Rs 20,000 (SBI Cheque No: 863419) , which got cleared from my Bank Account . Unfortunately, i have not got my policy bond till date. so plz send my policy bond soon………..
my application number: 15689002
Address- RAMESH CHANDRA PATHAK
CHANDRA KANT NIVAS
INDRA VIHAR COLONY BITHORIYA -1
HALDWANI NAINITAL UTTARAKHAND
PIN NO. 263139
MOB NO: 9758344908
Please sand my bond on my address …………..

Reply

VICTORIA MINJ June 13, 2012 at 2:17 pm

I HAVE PURCHASED A BOND FOR RS 20,000/- IN MY L&T FOLIO NO 11518354.BUT I HAVE REFUNDED RS 12000/-BY CHEQUE NO.104651.UNFORTUNATELY MY CHEQUE HAS BEEN EXPIRED DUE TO NOT SUBMITTED IN BANK BY ME AT PROPER TIME.AGAIN I HAVE SEND MY CHEQUE FOR REVALIDATION BUT TILL DATE NOT GET IT.MY MOBILE NO IS 9955018745.
KINDLY SEND ME FRESH CHEQUE.
L&T INFRA BONDS-2011

Reply

K S Nagaraj July 24, 2013 at 5:46 pm

I have not received the annual interest on the L&T infra bonds which were purchased by me
during March, 2012. With whom should I take it up for getting the interest amount

Reply

T.A. VISWANATHAN February 25, 2014 at 11:32 am

Dear Sir,

I have purchased the L&T Infrastructure Bond by paying Rs 20,000 ( Cheque No: 34166, Dt: 30.10.2010) , which got cleared from my Bank Account on 13/11/2010. Unfortunately, i have misplaced the counterfoil slip of the Application, due to which i don’t have any idea of my application number.

Also, i haven’t received the Soft / Hard (Original) Copy of the Infrastructure Bond till date.

Kindly let me know, what i need to do, to get both “Soft / Hard copy”?…

Please help me…..

Reply

T.A. VISWANATHAN February 25, 2014 at 11:38 am

Dear Sir,

I have purchased the L&T Infrastructure Bond by paying Rs 20,000 ( CENTRAL BANK Cheque No: 367676, Dt: 15.02.2011) , which got cleared from my Bank Account in 3 days. Then I have received one letter from L&T mentioned UB-10952298.

Also, i haven’t received the Soft / Hard (Original) Copy of the Infrastructure Bond till date.

Kindly let me know, what i need to do, to get both “Soft / Hard copy”?…

Please help me…..

Reply

Smt. K.RAVIKALA March 14, 2014 at 8:43 pm

I HAVE PURCHASED l & T BONDS EXEMPTEDSEC.80CCA) (SR 17.75BDO 2 DC 20 INE 691107166. during 2010-11. I want to have copy of the bond.When it will be matured pl.let me know.

Reply

Rakesh Kumar Gupta July 20, 2014 at 2:08 pm

Dear Sir,
Reg:L&T infrastructure Company Ltd.Bond Issue-2010.Application No.32606510.
Invested 20000/ in the above bond issue during 2010-11, Cheque cleared,but not yet received any communication despite lapse of 3 years.
Kindly advise me the present status on the above mail & oblige.
other details are as under.
DPID IN 301774
CLID 1005137

HOPING FOR A RESPONSE IN THE MATTER PLEASE.
REGARDS
RAKESH KUMAR GUPTA
246/1 SHASTRI NAGAR
MEERUT 250001

Reply

K V VIJAYASARATHY August 26, 2014 at 3:10 pm

I want to know the status of my L&T Infra Bond. Invested in 2010.
My Regd. Folio No.00205354 Certificate No.411656

Pl. reply to email

Reply

Mukul Roy September 22, 2014 at 5:46 pm

I purchased a L & T Infrabond on 27.01 2012 by cheque no of 837120 of ICICI bank. It is stolen from my flat.Plz let me know the no of the bond or any no from where I can confirm.
mukul
9230509139

Reply

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