NHAI Tax Free Bonds Allotment Complete

by Manshu on January 28, 2012

in Fixed Deposits

A few people have commented about receiving an SMS for the Demat allotment of NHAI tax free bonds, and if you applied for these bonds, and haven’t got any notification yet, you should check your Demat account in the next few days and they will most probably show up there.

In the past I’ve seen people not getting to know about these kind of allotments till a long time because their phone number is wrong or something like that and unfortunately none of these companies seem to think it is important to tell people when they are going to allot the bonds or when they are going to list so people have to just keep an eye out for news sources and depend on others to see when others get it and then check their accounts.

The NHAI bonds haven’t started trading yet of course since they were just allotted yesterday and Shiv found out that PFC bonds were listed in the wholesale segment which is a bit unusual. So watch out on Monday to see how they list and where the trading occurs.

Thanks to Amlan Basak, Shiv, Ravi and Bhaskar for sharing this information in comments here. Bhaskar and Shiv also mentioned that they got full allotment – I am not sure if this is applicable to everyone in the retail category but that might well be the case.

If not too much trouble can others who applied for the NHAI issue also leave comments to let everyone else know if you got the allotment or not and what percentage did you get. This not only helps keep track of what happened in this issue but helps make guesstimates for future issues as well.

{ 44 comments… read them below or add one }

Shiv Kukreja January 28, 2012 at 11:28 pm

Hi Manshu… Category III – Retail Investors portion was subscribed 51.596% and 1,54,78,652 (One Crore Fifty Four Lakh Seventy Eight Thousand Six Hundred Fifty Two) bonds have been issued as against 3 Crore bonds reserved. So, every valid application from a retail investor (below Rs. 5 lakhs) has been given 100% allotment.

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vivek January 29, 2012 at 5:36 am

Manshu – applied for 100 bonds and got 100 I applied on the first day though (28th December)

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Ashish January 29, 2012 at 6:56 am

Hi,

I just now checked my Demat account and see that the bonds have arrived. Got 100% of application.

Thanks

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Ravi July 11, 2012 at 11:27 am

Please guide – how you looked it up on icicidirect site.
Thanks

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austere January 29, 2012 at 12:24 pm

Got full allotment– 500 bonds.

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Ravi January 29, 2012 at 12:32 pm

applied 50. got 50. sms message received.
icici direct shows 50 in demat account but cannot allocate yet. icici bank which has demat link still does not show it.
should take some more time for the complete records to show up.

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Shiv Kukreja January 30, 2012 at 9:31 pm

Hi Manshu… Here is the Web Link to check the Allotment Status:

http://www.mcsdel.com/index001.asp

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Balaji February 7, 2012 at 8:23 am

Thanks for sharing the link. Applied – 50 on 2nd day and got allotted – 50.

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behappy January 31, 2012 at 12:20 am

Applied for 1250 bonds on 30-Dec and got zero allotment

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Ravi January 31, 2012 at 2:15 pm

I applied for 300 and got 300 as indicated in ICICIDIRECT. But unable to allocate as yet

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nagendra January 31, 2012 at 5:01 pm

how/where can we know about the PFC tax free bond allocation status ?

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Karthik Reddy Chintaparthi February 3, 2012 at 2:08 pm

Recieved a message today about the PFC bonds – deposited through ICICI Direct.

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Irene Patrao February 5, 2012 at 11:25 pm

Applied for 2000 bonds on the 3rd day itself but not a single bond has been allotted.
I broke my fixed deposit to secure the bonds but not a single bond has been allocated

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Rajendra February 6, 2012 at 3:45 pm

It’s happens because issue is oversubscribed first day then no way to apply 3rd day.
Here you need to good advisor then get commission / service charges for that purpose.
Broker/ agent is pool between Issuer and Investor.
Always take advise from good advisor.

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Santosh Sukhrani February 6, 2012 at 1:51 pm

Applied in HNI category on 1st day i.e. 28 Dec 2011.
Got 61.7% allotment along with refund on 28 Jan.
HNIs who applied on 2nd day or later got 0 %.
No allotment advice and no details of interest break up given till 6 Feb.
No news of listing either. Very shabby treatment of investors by Bond issuers.
They should give a fixed time line for all this when the issue is announced.
Also they should use the very popular and successful ASBA route as is done in IPOs.

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behappy February 7, 2012 at 9:07 am

Can somebody advise how to check the allotment and refund details of pfc tax free bonds. The mcs site was helpful for nhai only. Thanks!

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Shiv Kukreja February 7, 2012 at 9:55 am

Hi Behappy

Here is the link to check the PFC Tax Free Bonds allotment status:

http://mis.karvycomputershare.com/ipo/

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TCB February 7, 2012 at 9:52 am

Dear Shiv,
When is NHAI listing ? It has taken a very long time. Thanks

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Shiv Kukreja February 7, 2012 at 10:05 am

No clue.. but it should happen any day now.. you are right, NHAI has taken much more than expected time to list these bonds.

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TCB February 7, 2012 at 9:58 am

Dear Shiv,
Are you dealing in equity IPOs ? MCX IPO is expected in next few days. Do you have any details of this issue ? Thanks

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Shiv Kukreja February 7, 2012 at 10:15 am

Hi TCB… Yes we deal in IPOs as well. MCX is expected to hit the equity markets very soon but it is yet to officially announce the details.

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Santosh Sukhrani February 7, 2012 at 12:20 pm

Hurrah ! NHAI Tax Free Bonds are to be listed from 8 Feb 2012 onwards
Scrip Code on BSE is 961727 for 10-yr bond and 961728 for 15-yr bond.

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Shiv Kukreja February 7, 2012 at 11:55 pm

Sources for the listing info:

http://www.bseindia.com/cirbrief/new_notice_detail.asp?noticeid={184FCBAC-A210-41CE-9CD4-9EAD066B300C}&noticeno=20120207-5&dt=2/7/2012&icount=5&totcount=30&flag=0

http://www.nseindia.com/circulars/circular.htm – 1st Circular dated February 07, 2012 – NSE/CML/19961

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Sreedhar February 7, 2012 at 5:48 pm

I expect the bonds to list at 5 -6 percent premium.Those who wish to sell can do after selling pressure subsides in 2-3 days.Enjoy a happy listing

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vas nat February 8, 2012 at 10:35 pm

nice to see your post Sreedhar

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Manish Shah February 8, 2012 at 7:43 am

Sreedhar Sir,
Nice to see your posts after long period. Can I hope to see here frequently?

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Dheeraj February 8, 2012 at 8:42 am

Very fine to find you here.

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Sreedhar February 9, 2012 at 8:58 pm

Dear Friends,
Thxs for the warm wishes.Nice to see old friends in this forum.

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TCB February 8, 2012 at 8:44 am

Dear Manshu,
Is it possible to create a separate page for equity IPOs / FPOs, where the readers can discuss / put their comments on IPOs & FPOs ?

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Manshu February 8, 2012 at 8:58 am

Dear TCB, I used to have a forum here but had to get rid of it due to the high volume of spam. It was an out of control menace. I do write about IPOs so there is a section here for that with posts in the IPO category. Here is the link to that.

http://www.onemint.com/category/iponfo/

I am short on time these days but I’ll see if I can write a small post on MCX and you can use the comment section on that post.

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Dheeraj February 8, 2012 at 8:44 am

Dear Shreedhar ,

Very fine to see you here. Can you give me your FB account, twitter or personal Email .

Regards,

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Shiv Kukreja February 8, 2012 at 9:34 am

Hi All NHAI Tax Free Bond Investors… NHAI N2 Bonds list at Rs. 1035, touched a high of 1041.40 & a low of Rs. 1032… Trading at Rs. 1040.10

http://www.edelweiss.in/Debt/DebtSnapshot.aspx?cn=NHAI-N2

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saharanpuri February 9, 2012 at 12:37 am

I have been allotted NHAI bonds & now views invited from fellow friends.
If it was my own money I would have definitely held on for a long time.I have used my OD limit @12-13 % n applied .Now I am getting a total gain of 25-27000 Rs per application against interest cost of 5-7000 rs per application of 5 lacs.This acts as booster of increasing portfolio with original portfolio remains intact.

Now the question is now of selling it at what price & when in view of falling interest rates ?

RBI may announce its quantum of purchasing bond thru OMO route next tuesday which shud lower the interest rates.

2nd option is of selling my laggards like NHPC,Ramky,OIL n others n replacing them with NHAI Bonds .

3rd option is of continuing to hold them with expectation that capital gains in Bonds will be more than interest cost for 1-2 years

Also in view of very low premium existing on HUDCO bonds & lower rating of AA+ n that too by not very brilliant CARE shud we think of applying in HUDCO bonds?Cant the return be better by simply holding on to NHAI bonds.
Views invited on which option to follow

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VikasG February 9, 2012 at 1:07 pm

saharanpuri,

Can you please explain what is OD? Is it provided through a bank account or brokerage account? Thanks.

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Santosh Sukhrani February 9, 2012 at 2:54 pm

OD is Overdraft provided by a Bank. It is a credit facility arranged by you with your bank against some securitised collateral like your own Fixed Deposits with the Bank, Shares, Real Estate, etc. The rate of interest payable by you on the OD can be negotiated. It is different from a fixed loan from a bank because an OD applies to a bank account and interest is payable by you only when you use the OD funds and that too only for the exact number of days for which you use the funds.

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Shiv Kukreja February 9, 2012 at 2:49 pm

Hi Saharanpuri… I dont think it is advisable to hold on to NHAI Bonds with your OD running at 12-13%. Even if your NHAI Bonds give you 15% returns in the next one year, I would say that you should not play with any unforeseen event, which could turn the tables against your strategy of making money with falling interest rates. It would be a very small gain vs. some risk of interest rate rise. Though the probability of interest rates falling is quite high, what if it does not materialise due to some reason like rise in crude prices or severe monsoon failure or commodity price rise or any other reason.

Then comes the point of selling your laggards for holding these bonds. What if your laggards rise 50% in the next 2 years ?? We all know equities provide maximum gains in the long term & you never know when your laggards start running like horses.

Now comes the point of HUDCO Bonds in the NPO vs. NHAI Bonds in the secondary markets. I completely agree with you here. If I need to invest, say Rs. 5 lakhs, in one out of these two options, I will definitely go for NHAI Bonds from the secondary markets… still. The overall response has been poor for HUDCO and it could potentially create liquidity problems for the investors and see dearth of buyers post listing. I agree with you that the returns will be more in NHAI Bonds vs. HUDCO Bonds. Also, I have a feeling that HUDCO will open in the Red on listing.

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Sreedhar February 9, 2012 at 8:56 pm

Sahranpuri,
I completely agree with Shiv.Wait till Tuesday close & check if RBI announces any OMO.If there is an announcement bonds will rally & the NHAI bond premium will also rise.So my suggestion is sell on Wednesday.If you remember I suggested chittorgarh site members to book SBI bonds at 5 percent premium.Till 2 weeks back the SBI bond premium was less than 5 percent , it was hovering around 3.5-4 percent.The same money can be used in several other better options.For one the person who has sold SBI bond at 5 percent premium has made additional 5-6 percent in NHAI (Including Commission).Also Include money made from FPOs etc which were all safe.So you will get much larger returns by selling out.

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saharanpuri February 9, 2012 at 6:15 pm

Shivji,
Since I will continue to get 8.3% interest on bond & OD interest is 12.5% as such net annual outflow is approx 4 % i.e rs 40 per bond.In case the annual appreciation in bond is more than 40 rs then I would be in benefit.

Now the question is how much it could be in excess ? What has been the SBI bond experience over 1 year ?

Since interest rates are at peak currently,growth rate has fallen to sub 7 % level as announced 2 days back & have not been cut even once what could be the interest rate cut expectation? In view of the same what should be my selling price & time period?

Further I think these tax free bonds at such an attractive rates of 12 % for Highest tax bracket have come for the first time in Indias history .Correct me if I am wrong.Also it will attract lot of buyers who would buy it cum interest, enjoy the tax free interest & sell ex interest thus enjoying short term capital loss.

Further if one invests the tax free interest in stock market or good MF at expected return of 15 % which coupled with 12 % interest rate can make it a safe bet to pledge the bond with banks/FIs .Wouldnt it implies a better return by just holding on even on OD money?

Views invited.This could be the query of several investors like me who have invested on borrowed money & are pondering what to do?

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MITHILA KUMBHAT February 14, 2012 at 12:54 pm

PFC bonds got listed today on bse

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Karmali February 17, 2012 at 5:18 pm

Dear Sir,
Pls guide me as to the investment to get pension of Rs.5000/-p.m at the age of 60.
Date of Birth; 30-08-1962 & at the age of 58 DOB: 28-11-1958
Thanks
Karmali

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Nidhi March 2, 2012 at 5:27 pm

There is some confusion about the coupon rate.. the article say 8.2% while the NHAI website says http://www.nhai.org/bonds1.html 6% so what ist it? Pls advice

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Shiv Kukreja March 2, 2012 at 11:28 pm

Hi Nidhi

There is no reason for any confusion here. There are two kind of bonds. NHAI offers 6% interest on Capital Gain Bonds u/s. 54 EC. These are Tax Saving Bonds and the interest earned is taxable.

8.2% Tax-Free Bonds are pure investment bonds which dont offer any tax exemption. Its just that the interest earned is tax free.

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shashwat March 9, 2012 at 11:23 pm

Is there a lock-in for 10 yr PFC bond, I am not able to send it in secondary market

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Manshu March 10, 2012 at 6:34 am

Not that I’m aware of.

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