NEW DELHI, March 3: The Industrial Credit and Investment Corporation of India (ICICI) has launched a new series of bonds aimed at the individual investors. ICICI plans to raise Rs 400 crore with the right to retain oversubscription of upto Rs 400 crore.The issue will open on March 16 and close on March 25.
These bonds have been accorded the highest credit rating of AAA by the three major credit rating agencies, Crisil, Care and Icra.
Announcing the bonds here today, the general manager of ICICI Kalpana Morparia said that bonds had been timed so that the individual investor could utilise the bonds" tax saving measures while filing returns.
The bonds have been termed Safety Bonds and constitute three separate types of instruments. Tax Saving Bond, Regular Income Bond and Money Multiplier Bond. By investing in the Tax Saving Bond, investors can either choose to save tax under Section 88 or save tax on capital gains under Section 54EA or Section 54EB of the Income Tax Act, 1961. ICICI promises fullallotment to all valid applicants.
To avail of regular income on quarterly, half-yearly, or a yearly basis, savings can be put for five years under three options.
These options pay returns of 14 per cent, 13.5 per cent and 13.25 per cent. The minimum investment under these options range between Rs 5000 and Rs 10,000.
Keeping the liquidity of the investor in mind ICICI is planning market making exercise. It will introduce two way quotes for select bonds as it had done for the April 1997 issue.
This would ensure that small investors would have a guaranteed exit option if they want to sell the bonds.
ICICI has identified five needs of the small investors which it seeks to target with the Safety Bonds. These are safety, tax benefits, annual allotment, returns and service.
To ensure better service, ICICI is planning to offer on-line information to the investors.In the financial year 1997, ICICI earned profit after tax of Rs 770 crore while its disbursements were Rs 11,181 crore. Its diluted EPS wasRs 16.3.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
