Infrastructure Development Finance Company (IDFC) is expecting good retail investor participation from smaller towns to its long term infrastructure bonds.
The company said since financial awareness was rising among retail investors and people at large, the salaried class was increasingly getting interested in the capital market.
“We also feel that in the backdrop of recent fluctuations in the stock market, the retail investors would take more interest in bonds than equities, since the former is a more secure investment,” IDFC Foundation group head and COO Cherian Thomas said here.
IDFC bonds offer, which opened for subscription on November 21 would close on December 16. The tax-saving bond carries coupon rate of 9 per cent with a lock-in period of 5 years for buy-back.
He said only a small percentage of Indian tax payers invested in bonds, which indicated a huge untapped potential. IDFC has 40 per cent exposure in power sector, followed by transport/roads (23 per cent) and telecom (17 per cent).
IDFC funds private or public private partnership (PPP) projects.
