L&T Infrastructure Finance Company Limited, a 100% subsidiary of L&T Limited and registered with RBI as an Infrastructure Finance Company has come out with a public issue of Tax Saving Bonds.
Issue already open & closes on 02/11/2010.
Issue size of Rs.200 Crs. with an option to retain oversubscription upto Rs.500 Crs.
Income Tax benefit u/s. 80-CCF upto Rs.6,180/- for an investment of Rs.20,000/-
The Income Tax benefit is over and above 80-C, 80-CCC & 80-CCD.
Face Value of the Bond is Rs.1,000/- and minimum investment should be 5 Bonds
Maturity after 10 years & Lock in period is 5 years.
Buyback option available after 5 years & 7 years.
7.50% interest under 5 year buyback option & 7.75% interest under 7 year buyback option.
Physical & Demat options available. No TDS for interest under Demat option.
“CARE AA+” rating by CARE & LAA+ rating by ICRA.
Very attractive tax adjusted yield of more than 17%.