Close on the heels of the IDFC Infrastructure bonds – L&T is also issuing infrastructure bonds beginning October 15th 2010, and closing on November 2 2010.
L&T Bonds: Tax Saving Infrastructure Bonds
These are classified as infrastructure bonds under Section 80 CCF which means that investing in them will reduce your taxable income by Rs. 20,000.
This increases your effective yield because along with the interest you earn on these infrastructure bonds, you save on tax as well.
These bonds are good for a maximum of Rs. 20,000 as far as the tax saving aspect is concerned, so if you buy bonds worth Rs. 30,000 and nothing else, even then the maximum you can reduce from your taxable income is Rs. 20,000 because that is the cap on tax benefits on infrastructure bonds.
L&T Infrastructure Bonds Features
There are 4 series of L&T Bonds, and though these bonds have a term of 10 years, there is an option of a buyback after 5 years or 7 years.
The interest rates, and effective yields of different plans are shown below:
| Series | Tax Bracket | 1 | 2 | 3 | 4 |
| Face Value | —- | Rs. 1,000 | Rs. 1,000 | Rs. 1,000 | Rs. 1,000 |
| Interest Payment | —- | Annual | Cumulative | Annual | Cumulative |
| Interest Rate | —- | 7.75% | 7.75% | 7.50% | 7.50% |
| Maturity | —- | 10 years | 10 years | 10 years | 10 years |
| Buyback in years | —- | 7 years | 7 years | 5 years | 5 years |
| Yield on Buyback | 30.9% | 15.23% | 13.59% | 17.20% | 15.75% |
| 20.6% | 12.31% | 11.36% | 13.42% | 12.58% | |
| 10.3% | 9.86% | 9.44% | 10.23% | 9.86% |
L&T Bonds Minimum Investment
The minimum investment needed for you to invest in these bonds is Rs. 5,000 because you have to apply for a minimum of 5 bonds, and the face value of each bond is Rs. 1,000.
Open and Close Date
Subscription opened on October 15th, and will close on November 2nd 2010.
Credit Rating
The L&T bonds have been rated CARE AA+ by CARE and LAA+ by ICRA which indicate high credit quality and that the rated instruments carry low credit risk.
How can you invest in the L&T Infrastructure bonds?
You can invest in these bonds either in the physical form or electronically through brokers like ICICI Direct. You can buy a form through one of the several agents across the country and invest in it through them as well.
Here is a list of banks listed on their website that can give you more information as well:
- Axis Bank
- DBS Bank
- HDFC Bank
- HSBC Bank
- ICICI Bank
- IDBI Bank
- ING Bank
- SBI Bank
They also have this cool link on their special website for this bond where you can enter in your contact details and they will contact you and help you.
If any of you do decide to contact them then I am really interested to know your feedback because I tried to get in touch with the numbers given in the IDFC website, and tried at least 10 times to no avail. I’d like to know if this is any better.
Tax on interest earned from the L&T Infrastructure bond
The interest itself is not tax free. It’s only the Rs. 20,000 you get reduced from your taxable salary that helps save tax.
L&T Infrastructure bonds to list on NSE after 5 years
The Bonds are proposed to be listed on NSE, and can be traded after the initial 5 years lock-in period. After this lock-in period, the holders can also pledge the Bonds with banks for availing financial assistance.
You don’t need a demat account to invest in these bonds
L&T will offer you the option to hold the Bonds either in Dematerialized or Physical Certificate form.
NRIs can’t apply in the L&T Bonds
Non-resident investors including NRIs, FIIs and OCBs are not eligible to participate in the Issue.
Conclusion
These were some salient features of the L&T bond issue, and I hope you found this useful in order to make a decision on whether you want to opt for them or not. Keep in mind that IDFC has a similar issue running, and if you have already applied for that then you won’t get any additional tax benefit (over Rs. 20,000) by applying for this issue as well.
If you have any questions, leave a comment, and the community here will try to answer them for you.
Sir, my account no. given in LNT Infrastructure bond has been closed, now I want to register another account no., what is the procedure ?
SIR
I HAVE PURCHASED TOTAL RS 20000/- L & T INFRASTRUCTURE BONDS 2012.
FIRST BOND .REGD FOLIO NO-21431338, CERTIFICATE NO-298548
SERIES-2 , NO.OF DEBENTURES- TEN ONLY. DISTINCTIVE NO 3443383-3443392. DATE OF ALLOTMENT 10.01.2012, LOCK-IN-PERIOD 09.01.2017.
SECOND BOND. REGD FOLIO NO 20322713, CERTIFICATE NO 132271,SERIES-1, NO . OF DEBENTURES- TEN ONLY.DISTINCTIVE NOS 643559-643568, DATE OF ALLOTMENT 10.01.2012,LOCK-IN-PERIOD 09.01.2017.
I HAVE NOT RECEIVED THE PAYMENT TILL DATE. REQUEST YOU TO PLEASE LOOK INTO THE MATTER AND ARRANGE TO MAKE PAYMENT OF SAID BOND.
Not Received Payment L & T Infra Bond 2012a.
I have purchased bond 2012a on 24/03/2012 of Rs20000/- each 1000 * 20. The details of bonds as under:-
Regd. Folio no :- 23235536
No of Debentures:- 20
Distinctive No :-8129826-8129845
In the name of :- PRAVINCHANDRA VALLABHDAS MAKADIA
Allotment Date :- 24.03.2012
Lock in period due 23.03.2017
I have not received the payment till date.
Request you to please look in this matter and arrange to make payment of the said bond.
Mobile no.9427260534
Email I’d : [email protected]
Dear sir,
I have purchased 2o No. debentures of L & T long term infrastructure bonds 2011A series amounting Rs.20000/-(Twenty Thousands). Details are as follows :-
SPD/OTH/27244, REF : – 681503 , ENV No. : – 354744 EM750732047IN ,
Env : – 354744 1/1 1333 / 681503 54863 , Application No. : – 25779610
Regd. Folio No. : – 11703046 , Certificate No. : – 737366 ,
Name of the Holder DILIP KUMAR SINGH , Series : – 2 (two) ,
No. of Debentures : – Twenty only (20) , Distinctive Nos. : – 3185303–3185322 , Date Allotment : 23-03-2011 .
Sir, till date I did not get neither maturity amount nor any redemption letter / buy back offer letter from you.
I therefore, request you please look the matter and send me maturity amount whatsoever as soon as possible.
Thanking you !
Yours
Dilip Kumar Singh
Dear Sir,
I have purchased 20 Nos. Debentures of L & T long term infrastructure bonds 2011A series. The details are as follows :-
Env : – 323574 1/1 1333/681504 23630 , ISIN : INE691I07232 , Regd. Folio No. : – 11703054, Certifcate No. : – 737367
Name of Holder : – SATYENDRA PRASAD SINGH
Series : – 2 (two) , No. of Debentures : – Twenty (20)
Distinctive Nos. : – 3185323–3185342 , Date of Allotment : – 23-03-2011 , Locking Period : – Three Years (3 Yrs.)
Sir, till date I did not get either maturity amount or any redemption letter/ buy back offer from you.
I therefore, request you please look after the matter and send me the maturity amount whatsoever.
Thanking you !
I have already dispatched my papers last month but have not received the maturity amount of my bonds bearing nos 587963 date 24.03.2012 and 675829 date 23.03.2011
L&T INFRASTRUCTURE FINANCE COMPLAY LIMITED PURCHASED IN 2010
1. HAVE PURCHSED L& T INFRA BOND.
6YEARS COMPLETED 6MONTHS COMPLETED
HOW AND WHERE CAN I SELL MY BOND
NO CLARITY FORM COMPANY MENTIONE ANYWHERE
PLEASE GIVE PHONE NO. ARE MOBIL NO.
1. NAME OF THE HOLEDER VENUGOPAL ERUKULLA
2. SERIES 4,
3. REGD FOLLO NO. 00190888
4. CERTIFICATE NO. 410781
5. DISTINCIVE NOS. 1498117 – 1498136
PLEASE GIVE INFORMATION PLEASE
I have L&T Infra bond -2011B, Series 1.
Purchased 20 unit of Rs. 1000. i.e Total value Rs. 20000/-
Purchased on- 10-01-2012 .This bond locking period up to 09-01-2017.
I have two queries:-
i) How to update my present address in bond?
ii) When & how I can get the maturity amount
kindly provide information to my e mail id sir.
I have purchsed L7T infra bond.
5 years completed , it is in my Demat Account.
How and where can can I sell my bond ????
No clarity form company mentioned anywhere ??
I bought L & T Debentures on 24.03.2012 and as the five year lock in period is over, I wish to redeem them. Please tell me the procedure for the same. Which documents are required and where should I courier them. I have not received any form/notice from the Company.
Folio No 22206753
Certificate No. 420675
No of Debentures 20
Distinctive Nos. 5699780 – 5699799
I bought L & T Infrastructure Debentures on 24.03.2012 and as the five year lock in period is over, I wish to redeem them. Please tell me the procedure for the same. Which documents are required and where should I courier them. I have not received any form/notice from the Company.
Folio No 22206753
Certificate No. 420675
No of Debentures 20
Distinctive Nos. 5699780 – 5699799
Hi..how to withdraw L & T tax saving Bond..
Regds
Sageer Khan
09828059007
R/Sir I am the holder of L&T Infrastructure Finance Com Ltd. security bond ISIN No. 69I07190, SR-4 7.5 BD 02DC 20 FVRS 1000. I applied for these bonds electronically through HDFC Bank DEMAT ACCOUNT. Now please suggest me what is the next procedure to get my maturity amount .
I have L&T Infra bond long term 2011B Series. Purchase 20 unit of Rs. 1000. i.e Total value Rs. 20000/-
Purchase on- 10-01-2012 .This tax saving debentures locking period
up to 09-01-2017. How can i withdraw or purchase from this another
debentures. So, kindly provide information.
I purchased L&T infrastructure bond amounting to Rs.20000 in 2010 in series 4 bearing Regd. Folio no 00058246 Certificate no 403286,Pl.let me know when & how I can get the maturity amount.Do I need to submit any documents to your office or it will transferred into my account by you.
Thanks
Dear sir
I have purchased lnt bond in 2012 . But not received a copy any bond .and i want reddem the bond .pls help …
Regards
Sourav
9812664000
Hi Sourav,
Please contact Link Intime at 022 49186200 or 022 49186270 – http://linkintime.co.in/website/ContactUs.aspx
For redemption of L&T Infrastructure Bonds or any other query, investors need to contact Link Intime at 022 49186200 or 022 49186270 – http://linkintime.co.in/website/ContactUs.aspx
Sir,
With due respect I bag to say that I had purchased infrastructure
bond from your company whose allotment date is 24-03-2012 ( FOLIO
NO.-22964054) and certificate no. is 556431.
Name of the Holders is LOKENDRA KUMAR AGARWAL .Lock in period is 23-03-2017.
I sent all the required papers for redemption by registerd post to
your office but from it is refused form your officials.Kindly guide me
the way for the same.I shall be highly obliged to yu.
I have L&T long term infra structure bond of 2010A series which completed locking period on 2-12-2015.Can you name the agencies through which I can trade to redeem them and get matured amount
My Long Term Infrastructure Bonds 2012A series lock in period is over today i.e., 23.03.2017. How do I redeem them?