Tax Saving Bonds by L&T Infrastructure Finance Co.

Dear Investor,

 

We are pleased to present you the details of public issue of bonds by L&T Infrastructure Finance Company. Investment upto a maximum of Rs.20,000 in these bonds is eligible for deduction u/s 80CCF of the Income Tax Act for the Financial Year 2010-11. An Individual or HUF can avail of this benefit in addition to the limit of Rs.1 Lakh u/s 80C.  

Company Profile: 

L&T Infrastructure Finance Company Limited, a 100% subsidiary of Larsen & Toubro Limited, was incorporated in 2006, and is registered with the RBI as a systemically important non deposit taking NBFC and classified as an IFC. The company's business comprises the provision of financial products and services for customers engaged in infrastructure development, construction and operations & maintenance with a focus on the power, roads, telecommunications, oil and gas and ports sectors in India. The company is registered with the RBI as an Infrastructure Finance Company, or "IFC", which allows it to optimize its capital structure by diversifying its borrowings and accessing long-term funding resources, thereby expanding its financing operations while maintaining its competitive cost of funds. The total income of the company for Fiscal Year 2010 was Rs.4,504.23 million. The total loans and advances outstanding of the Company as at March 31, 2010 were Rs. 42,884.99 million and total disbursements for Fiscal Year 2010 were Rs.37,955.14 million. 

Salient Features of the Issue: 

 

• Public issue of bonds by an infrastructure finance company under Sec 80 CCF

 

• The bonds are rated CARE AA+ by CARE and LAA+ by ICRA

 

• These bonds will be issued only to Resident Indian Individuals (Major) and HUF

 

• The bonds are fully secured with exclusive first charge on specific receivables of the Company

 

• The Bonds bear an attractive combination of coupon rate ranging between 7.50% and 7.75% p.a. coupled with tax benefits of upto Rs 20,000 under

      Sec 80 CCF

 

• The bonds will be issued in Physical or Demat Form at the option of investors

 

• No TDS applicable on bonds issued in Demat form.

 

• The bonds will be listed on NSE and can be traded after the 5 year lock-in period

 

• The bonds have a face value of Rs.5000 each and the minimum application is 5 bonds

Issue Profile:

 

 

The issue closes for subscription on November 02, 2010. Kindly communicate your request for details and application forms by calling our Toll-Free Number 1800 425 0123 between 9.30 am to 6.30 pm 

Regards,

 Abhijit Singh| Branch Head | Sprism Investment Services Pvt Ltd#

#4 | 2nd Floor | Khaitan Chambers | Modi Street |Mumbai.
(022 – 30268502 | Mobile: (+91) 9769733071 | 7 Fax 022- 30268500
* abhijit@sprism.in | website: www.sprisminvest.com