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.
Dear Sir,
It is for your kind information the my tranche-2 IDFC BOND has been mature on dt.17.01.2017 of its application was no.41782034 dt.17.01.2012(4 no.)@ 5000/- each purchased through GLOBLE CAPITAL MARKET LTD.
I have demat a/c CLIENT ID NO.10526592
My mobile no.9968283009 contact no.& Pan card no.AESPK7833B.
My Bank a/c no.30082375914 of SBI of India bank branch Samay pur badly ,Delhi.
I want to redemption of IDFC BOND And payback in my a/c as earliest pl. Further I do not want extension the all 4 no. bond in future pl.
I have idfc long term infrastructure bond tranche 2 , certificate no 247317, distinctive no 566630-33, four bonds each of Rs 5000 dt 21/02/2011. When will I get my money with interest and what is the system. Tell me please.
Please send the buyback form for my above send policy
My Registered Folio No:IDEO238614
Awaiting prompt reply please
Sir
I have a IDFC Long Term Infrastructure Bonds (2011-12) – Tranche2
bonds which will buyback date is 21.03.2017
Bonds series is 184525
ISIN:INEO43DO7AF2
Certificate No:238614
No of Bonds:4
Distinctive No(s): 0000543148-0000543151
please inform how I will Buyback my amount
Thabking you
No response
Please send buy back form of IDFC Infrastructure Bonds Tranche 2 of Rg no IDB 0221175 of 4 bonds 463214-463217 .
No response till date for 14 Aug 2016 e mail
Please send money back form tranche 2011
Sir,
I have purchasedIDFC Bonds on dated-21 feb 2011 series 2 folio No. IDB0203108 Certificate no. 203108 no. of bonds four only Distinctive no.(s) 0000391289-0000391292 , ISIN -INE043D 07385 is completed period of five years on dated-22 feb 2016 but not received the payment till date. pl check & resolve this matter. pl guide foe further n/a .
Thanks
vineet kumar
C-15/1, First Floor
Ganesh Nagar, New Delhi-110018
Mobile No.-9868134058
I have IFCI bonds purchased in Jan-Feb2011 in demat form with reference 31012021. Completing 5 years in this month end. What is the procedure for redemption?
I have invested in idfc infrabonds in 20 th. Oct 2010 .I have been allotted 4 bonds each of face value Rs 5000.00 in physical form. What I have to do for buy back of the bonds noted above. I don’t have demat account.
Thanking you.
Yours faithfully
A H Naik
9869310068
Hi Arvind,
You need to contact Karvy Computershare for the same.
Contact No. – 1800 3454 001
e-mail id – einward.ris@karvy.com
Thanks Sir,
As per your instruction I called them, after tiresome interaction with them continuously I found their office where to submit that bond. I got amount deposited after 1& 1/2 month in my account again after continuous follow up. Never suggest this bond to anyone as while taking money they take very fast but while giving they create lot of hurdles.
I have invested in idfc infrabonds in 20 th. Oct 2010 my application no was 5 2632178 . i have been allotted 4 bonds each of face value Rs 5000.00 in demat (a/c no 29035325 Dp Id 301250, ISIN Code INE43D07286) form. What I have to do for buy back of the bonds noted above.
Thanking you.
Yours faithfully
Krishna Pada Bhattacharji
REPLY
I like to change the NEFT if I had done it at the time of purchase. Please let me direct what I have to do and the requirement to be sent, buyback dt. is 22.02.2016. I want have the money as on 22.02.2016 than what is procedure to get the money ?
Thanking You
N.C.Choudhury
Hello,
What is the procedure for buyback of IDFC Infra Bonds? My Bayback date is Feb-2016.
my grandfather had purchased these bonds. he passed away last month. is it possible to transfer these bonds into his successor’s name or redeem these bonds now? if yes then please guide me as to how am i to approach. thank you!
Hi Harsh, sorry to know about your grandfather!
These bonds cannot be redeemed before the lock-in period of five years gets completed. A successor or legal heir can get these bonds transmitted in his/her name by submitting either succession certificate or letter of administration to the compnay along with the original bond certificate.
idfc infrabonds 2012 certificatres not received
rajinder kaur w/o narinder singh sidhu app no
41971596 ,date13/2/2012 ,rs,20000 r/o muktsar
another applicant dr krishanan app no 41971601
rs 20000, datew7/2/2012r/o adesh nhospital muktsar
contyact 9814714773 mobile
I bought and also advise to do so to my several friends. But Mr. Pramod Singh Negi’s Certificate bears name as Gursharan Singh although the covering letter is having its own name. Dealing was done with Praveen Pathak at the State Bank of India,Parliament Street, New Delhi. After so many months they were making excuse for one or the other but now telling me to deal direct with the company. Please suggest.
Hi Sanjeev… Most likely it is a punching error or typing error by Karvy Computershare. First of all, do you people have with you the photocopy of the filled application form, which you or Praveen must have submitted while applying for IDFC Infra Bonds?
If yes, then talk to Karvy Computershare on their customer care no. or mail them at eimward.ris@karvy.com stating there is a name mismatch on the certificate. Karvy will have to issue you a new bond certificate if it is their mistake.
If you dont have the copy of the form then ask Praveen to provide it to you. You’ll have to contact Karvy for this thing, Praveen is of very little help to you. This industry has become sales-oriented and very little help comes for service issues.
i have invested in idfc infra bonds in feb-2012. it has been allotted in demat mode. i have not mentioned the buy back option in the application. can any thing be done now to opt buy back option?
i have invested in idfc infrabonds in feb 2012. i have been allotted in demat mode. unfortunately i have not ticked the buy back option in the application.can any be done to opt buy back option now?