Government-run companies are rolling out tax-free bonds of Rs 18,000 crore collectively!

Retail investors, who have been looking to get good returns, here’s some good news for you.

State-owned companies like Indian Railways Finance Corporation (IRFC), National Highways Authority of India (NHAI) and Housing & Urban Development Corporation (HUDCO) are rolling out tax-free bonds of around Rs 18,000 crore!

The collective tax-free bonds will be out over next month.

This will trigger rush to buy these bonds as people could not buy it earlier.

Reportedly, IRFC will roll out bonds worth Rs 4,532 crore at retail interest rates of at least 7.30% for at least 10-year maturities.

HUDCO will sell around Rs 3,500 crore of tax-free bonds, whereas NHAI will roll out nearly Rs 10,000 crore tax-free bonds.

"Large issue size will help investors to lock in at attractive rates over a long period with tax efficiency. Most investors, especially retail, didn't get the desired allotment in tax-free issuances a few weeks ago due to small issue sizes," Ajay Manglunia, head of fixed income at Edelweiss Securities, told ET.

Industry experts point out that individuals nearing retirement would buy such bonds as they are safe also to invest for they are state-run firms.

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