Infrastructure Development Finance Company (IDFC) collected a record 2.36 lakh investor applications for an approximate amount of Rs 436 crore in the first tranche of its recently launched tax-saving long-term infrastructure bond issue.
This bond issue is IDFC’s first effort to tap the retail savings pool. With the income tax deduction on this instrument limited to a maximum investment sum of Rs 20,000, the bond issue appealed to the deepest segment of domestic retail savings, according to a company release. This was reflected in the average investment of around Rs 18,500 per application, it added.
IDFC will come back to the market for additional tranches of this long term bond issue before March 31, 2011. The lead managers to the Issue were Citigroup, Enam, Kotak Mahindra Capital and IDFC Capital. IDBI Trusteeship Services were the debenture trustee for the bonds.
