IDFC has come out with the second tranche of its infrastructure bonds, and I thought I’d do a post on them because I love getting emails from people telling me that I should mail them their bond certificates at the earliest.
IDFC Infrastructure Bond’s second tranche is also covered under section 80CCF, which means the primary benefit of these bonds is the Rs. 20,000 reduction in taxable income it enables over and above the Rs. 100,000 deduction in the case of Section 80C.
IDFC Infra Bonds: Opening and Closing Dates
The new issue started from 17th Jan 2011, and will close on 4th February 2011.
Interest Rates and Options
The bonds offer an 8% interest rate, and you have an option of getting interest paid annually, or get a cumulative sum at the end of 5 or 10 years. The bonds mature in 10 years, but there is a buyback option after 5 years which means that you can sell the bonds back to IDFC after 5 years, and don’t have to wait the maturity period of 10 years.
| Details | Series 1 | Series 2 |
| Face Value | Rs. 5,000 | Rs. 5,000 |
| Interest Payment | Annual | No interest will be paid |
| Interest Rate | 8.00% | NA |
| Buyback | After 5 years and 1 day from allotment | After 5 years and 1 day from allotment |
| Buyback amount | Rs.5,000 | Rs. 7,350 |
| Maturity amount after 10 years | Rs. 5,000 | Rs. 10,800 |
Minimum Investment
The minimum investment in these bonds is Rs. 10,000, and while there is no maximum limit, you can get a lot more than 8% for shorter durations for your money in bank fixed deposits, so it makes sense to not buy more than Rs. 20,000 worth of these bonds.
IDFC Infrastructure Tranche 2 Bonds: Physical and Demat Form Available
These bonds are available in physical as well as demat form, so you if you don’t have a demat account, you can still purchase these bonds .
Credit Rating and Secured Bonds
ICRA has assigned LAAA to these second tranche bonds which indicates stable outlook and highest safety. Fitch has assigned AAA(Ind) also indicating stable outlook.
These infra bonds are secured as well.
Tax Proof for the Bonds
If you buy the bonds in physical form then you will receive a receipt, and some people have indicated that this receipt has been used by them as tax proofs. I’m not sure if everyone is able to do so, but that’s one option, and you should check with your company CA to see if this will do.
Once the bond is allotted, you will get an allotment advice indicating that you have bought the bonds, so you can use that allotment advice for tax proof. Keep in mind that you should update your mailing address attached to your Demat account and trading account, so that there are no issues later on.
Last time around, there was a very good feature with the IDFC bonds where they made a web page where people could just input their application number, and retrieve the allotment advice. They could have it this time as well, so don’t lose your application number.
How to buy the IDFC Infrastructure bonds?
You can buy them through a trading account like ICICI Direct; by filling up the physical forms, and submitting them in a branch that’s accepting them; or through an IFA (Independent Financial Adviser).
I don’t have a list of banks you can go to, but I see that KMCC, ENAM, HDFC Bank, ICICI Securities, JM Financials and IDFC Capital are the lead managers, so if there is a branch of one of these near your house or office, you can try them out.
One last word to let you know that this is not the website of IDFC or the lead managers, so writing a comment and email telling me to send the bond certificate to you or do the “needful” isn’t going to help you.
Now, as is custom – ignore what I just said and write a comment to tell me to send you the bond or do the needful at the earliest.
Also read about the REC Infrastructure Bonds.
I have applied for IDFC long term infrastructure bond Tanche-2. I recd msg on my mobile that my application is 76507270. I have not recieved the bond paper on the address mentioned in my application till now. Please let me know when I will received my Bond. I have no experience about investment in Bonds. Will you kindly tell how can I encash it ? What is the locking period, and what will be the maturity value ?
Till date no intimation has been received what I requested
This is like a newspaper website not the website of the bond issuer. Also, you don’t know the maturity, lock in period or any other details of the bonds? How did you ever buy them then?
I have inyested Tranche 2bonds to IDFC in 23-02-2012 by Dhanlaxmi Bank Ltd. Bhopal.My application no. is 77507777. kindly sent me y Bond papers to the address given below- Rakesh Kumar dubey, House no. 2, Near Gayatri mandir ,Obaidullaganj, District- Raisen M.P. Pincode -464993.
I have applied for IDFC long term infrastructure bond Tanche-2.My application no. is77507777.I deposited by cheque no.132701,SBI obaidullaganj ,Dist. raisen, M.P. branch.I have deposit application form and a cheue of rupees 20000/-by Dhanlaxmi Bank Ltd. Bhopal dated 23-02-2012.TAR no.1291463 58675.I have not recieved the bond paper on the address till now.Please may be sent to the address given below-
i have invested Tranche 2 bonds of IDFC in Feb 2012,
when i will get bonds, i has submite to my employer for tax savings
kindly inform me.
thanks
R.Venkoba Rao
You can use the receipt on the application form as tax proof.
My company is not accepting the bank acknowledgement either. They are asking for the certificate itself. Isthere any url to get the certificate online – in soft copy? I am asking about the IDFC Tranche 2 ONE.
Hi,
I have taken IDFC Tranche2 bonds directly from IDBI bank. I dont have DMAT account.
When can i get the bond or allotment letter ? i have submitted the acknowledment and bank statement in company. They rejected and need bond or allotment letter.
Please advice where can i see the allotment details.
Thanks,
Radhika.
Hi Radhika… IDFC Infra Bonds – Tranche 2 allotment will hapeen within 30 days after the closure of the issue, which is scheduled to happen on February 25th, 2012. So you should expect the allotment to happen before March 25th, 2012.
Almost all of the companies accept the bank stamped acknowledgement as the investment proof. Maximum they ask for the bank statement for payment confirmation. As you’ve submitted both & still your company is not ready to accept it, you need to press harder to convince them about the same. Nothing more can be done about it.
I have applied for IDFC Long Term Infrastructure Bond-Tanche 2. My applicatin no. is 41701194 Folio No.-IDB0336409 dated 21st Feb, 2011. I have not received the Bond Paper on the address given till now. Now I have transferred to Allahabad. Hence my Bond Paper may please be sent to the address given below:-
ARUN KUMAR
Zonal Accounts Office, CBDT, Aaykar Bhawan,
38 M.G. Marg, Civil Lines, Allahabad-211001
Kindly let me know what is meant by secured? Who gives guarantee to return in case it means so? In other way what is the difference butween secured & non-secured 80ccf infrastructure bond?
Regards
It means that if the company goes bankrupt then the court can sell some of the company’s assets and try to recover the loan money. It DOES NOT mean any sort of guarantee. You could still lose money if they aren’t able to recover the money by selling the attached asset.
Till date I had not received the bond certificate (hard copy)for the bonds applied against the application form no. 21823882 for Rs. 20,000/- in fin./year 2010-11.
But I have not also been alloted in my beneficiery account(demat account)
Request to kindly arrange to despatch the same to my residence address mentioned in the application form. Banamali ghorai
Till date I had not received the bond certificate (hard copy)for the bonds applied against the application form no. 21823882 for Rs. 20,000/- .
But I have not also been alloted in my beneficiery account(demat account)
Request to kindly arrange to despatch the same to my residence address mentioned in the application form. Banamali ghorai
Hi Mr. Manoj
Please check the allotment status of IDFC Infra Bonds through this link – http://karisma.karvy.com/investor/jsp/IDFC-APP.jsp
In case you face any further difficulty, contact the Registrar of the issue which is Karvy Computershare.
Till date I had not received the bond certificate (hard copy)for the bonds applied against the application form no. 51901317.However I have been alloted in my beneficiery account(demat account)
Request to kindly arrange to despatch the same to my residence address mentioned in the application form. Manoj Pattnaik
What part of the above comment do you fail to understand?
This is like a news website like Times of India – you won’t get someone from here to dispatch your bonds. Talk to your agent or whoever helped you buy them.
I had purchaised 4 no. of IDFC infra dond last yeay. Till now I have not received my dond copy. Pl advise what to do.
i had IDFC infra bond in my demat account.I want transfer My Demat account to other company.can IDFC bond is tranfered to my NEW demat Account?………..
Dear Sir,
This is to inform you kindly response 2 applications dittale as per under
Ramkumar Gupta App. No. 42764918
Please talk to your agent or the bank or whoever sold you this fund. This is like a news website like Times of India and can’t help you in getting any details.
Hi
Check the status of your application here:
http://mis.karvycomputershare.com/ipo/
I tried to check it by putting your application no. but I think you have not been allotted the bonds due to some reason… Check your Bank Statement whether the cheque you issued for these bonds got cleared or not… If it did, in whose name it got cleared… contact your service provider immediately in case you are not able to find any clues..
hi,
i have deposited Rs. 20000/- in IDFC Trenche 2 .Application No. is 5896979. Till this dt. i have neither received the Bond nor the advise note. Pl.let me know the procedure i have to follow ?
Pl. reply.
Surekha
Hi Mr. Pramod
You’ve been allotted 2 Bonds in your VCK Share & Stock Broking Demat A/C. 1205320000030581. Please check with your DP.
In case of any further query Contact Karvy at 1800-3454-001 or mail them at einward.ris@karvy.com.
sir,
i have applied infrastructure bond vide applicatiin no-3-5774830 .Till date neither I received any bond nor any information .please let me know what should i do
Till date I had not received the bond certificate & allotment advice for the bonds applied against the application form no. 18627060.
Request to kindly arrange to despatch to my residence address mentioned in the application form.
Madhumita De
If Any Person Living In Mumbai need any Tax savings options along with IDFC INFRA feel free to call me on 9022235541 & 9619789186
IDFC Infra Bond Last Date 16th March with 8.25% Return
Tax Savings Applicable 80CC Rs. 1 Lakh
Applicable 80 D Rs. 15000/- your self
Applicable 80 D Rs. 20000/- for Parents
Applicable 80CCF Rs. 20000/- Infra Bonds
Total Saving Rs. 1.55 Lakh if ur in 30% slab save Rs. 47430
If Any Person who think that they are not getting back Investment of 80 D then i have product u can save full tax save in 80 D and get ur investment back with profit also
Hi, I have bought the IDFC Bond. I bought with the assumption that my deduction under 80 C will be over Rs. 1 lakh. But now, when I calculate its not so.. In such case, can I use this bond for any deduction under 80 C ?
Anu – What you will get is a 20,000 deduction in your taxable income provided you invested in bonds worth Rs. 20k. Anything above that will not give a tax benefit. What is the value of the bonds you’ve purchased?