Flexibond Retail Mopup Seen At Rs 750 Cr

The Flexibond 3 of Industrial Development Bank of India (IDBI) has managed to receive the principal amount of Rs 750 crore from the retail segment, according to early estimate figures.

The issue has elicited nearly four lakh applications from 470 collection centres across the country, sources said.

The final figure will be announced only at the beginning of next week as the applications from collection centres are still flowing into the head office of Industrial Development Bank of India.

The Flexibond Series 3, which closed yesterday for subscription, has a greenshoe option of Rs 750 crore.

Sources said although the issue may not garner the entire fund of Rs 1,500 crore, including the greenshoe option, it is expected to touch the Rs 1,000-crore mark from retail subscription alone.

 

Of the four instruments - the Infrastructure Bond which offers an yield of 12.5 per cent has received a maximum response as it provides tax exemption.

Industrial Development Bank of India has received approval from the Central Board of Direct Taxes to retain the entire Rs 1,500 crore under the Infrastructure Bond segment.

Sources said the Growing Income Bond and the Regular Income bond, too, received good response, while the Deep Discount Bond was not well received.

Meanwhile, Reuters has reported, quoting an official at the SBI Capital Markets, which is the lead managers to the issue, that IDBI is expected to raise at least Rs 1,200 crore in its Flexibond issue.

The report said the development bank would retain the entire greenshoe option if it raised Rs 1,500 crore.