IRFC hopeful of raising Rs 1k cr from capital gains bonds

With an aim to raise Rs 500 crore with the green shoe option to retain over-subscription, IRFC is looking at mopping up Rs 1,000 crore from the capital gains bonds, he said here.

Stating that IRFC opened the issue on November 10, Pattanayak said the bonds have a lock-in period of three years and presently yields an interest of 5.25 per cent per annum, payable on October 15

every year.

The bonds have benefits under Section 54EC of the Income Tax Act, 1961, he said.

IRFC is among the four institutions authorised by the Union Finance Ministry to issue such bonds. The other three non-banking financial companies are NHAI, REC and PFC.

"The IRFC bonds are safe, secure, redeemable and non-transferable, and are a cheap source of funding for us," the managing director said, adding, that a person who has received capital gains in a year can invest in these bonds and save tax on capital gains.

An investor can invest a minimum of Rs 20,000, and in multiples of Rs 10,000 thereafter, with a maximum of up to Rs 50 lakh in these bonds, during a financial year.

Noting that IRFC is one among the five Railway PSUs selected for listing on the bourses, Pattanayak, who was on a visit here, said preparations were underway in that direction.