IIFCL seeks Sebi nod to mop up Rs 8,171 cr via tax-free bonds

Proceeds from the issue will be utilised by IIFCL for financing activities including lending and investments

State-owned India Infrastructure Finance Company Ltd (IIFCL) has sought market regulator Sebi's approval to raise up to Rs 8,171 crore through tax-free bonds.

"Public issue by IIFCL tax-free, secured, redeemable, non-convertible bonds in the nature of debentures of face value of Rs 1,000 each, having tax benefits ... For an amount aggregating up to Rs 8,171.50 crore for fiscal 2014," said the draft documents filed with Sebi.

The proceeds from the issue would be utilised by IIFCL for financing activities including lending and investments. Besides, the fund would be used to meet working capital requirements.

The lead managers to the issue are - SBI Capital Markets, A K Capital Services, Axis Capital, ICICI Securities, Karvy Investor Services and RR Investors Capital Services, while Karvy Computershare is the registrar to the issue.

In February this year, the government had allowed some financial institutions to mop up about Rs 50,000 crore from tax-free bonds in 2013-14 in a bid to encourage investment in the infrastructure sector.