PUBLIC ISSUE OF TAX FREE SECURED REDEEMABLE NON CONVERTIBLE DEBENTURES of face value of ` 1,000 each having tax benefits under section 10(15) (iv) (h) Income Tax Act, 1961, as amended for an amount aggregating upto ` 2,805.66 Crores (the Residual Shelf Limit) ABOUT THE ISSUER HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED A Wholly Owned Government Company Company Highlights Business Activities Strengths Strategies Financials Performance A techno-financial institution engaged in the financing and promotion of housing and urban infrastructure projects throughout India A wholly owned government company with the objective to provide long term finance and undertake housing and urban infrastructure development programmes. A public financial institution conferred the status of Mini-ratna A pan-india presence through our wide network of zonal, regional and development offices. Company occupies a key position in the GoI s growth plans and implementation of its policies for the housing and urban infrastructure sector. Business is broadly classified into the following two business platforms - Housing finance, wherein the beneficiaries of its financing include State government agencies and borrowers belonging to all sections society in urban and rural areas. Urban infrastructure finance, wherein the beneficiaries of its financing include projects relating to social infrastructure and area development, water supply, sewerage and drainage, roads and transport, power, emerging sector, commercial infrastructure and others. Company also provides consultancy services in the field of urban and regional planning, design and development, environmental engineering, social development, government programmes and others. The business is supported by capacity building activities through HSMI, and alternative building materials and cost-effective technology promotion. Key strategic position in the GoI's plans for growth housing and urban infrastructure sector Strong financial position Pan-India presence Established track record Varied consultancy services in housing and urban infrastructure sector Wide pool of skilled and professional workforce Enhance participation in implementation of government programmes on housing and urban infrastructure Increase financing housing and urban infrastructure projects Develop strategic alliances with various agencies Enhance income from fee-based activities As on Sep 30, 2012, Company has provided finance for over 15 million dwelling units and over 1600 urban infrastructure projects in India. Further, up to Sep 30, 2012, HUDCO has sanctioned loans of ` 41,274 crores for housing and ` 90,874 crores for urban infrastructure on a cumulative basis, of which ` 31,050 crores and ` 50,599 crores has been disbursed respectively. As part of consultancy services, up to Sep 30, 2012, HUDCO had appraised 1,253 projects with a project cost of ` 26,482.92 crores under JNNURM.
TAX BENEFITS OF THE BONDS The income by way of interest on these Bonds is fully exempt from Income Tax and shall not form part of Total Income No deduction of tax at source (TDS) from the interest, which accrues to the bondholders in these bonds irrespective amount interest or the status investors No upper limit on investment amount No lock in period for the Bonds The Bonds shall be listed and can be traded on NSE Wealth Tax is not levied on investment in Bond under section 2(ea) Wealth-tax Act, 1957 However, no deduction from the total income will be available for invested amount Issue Opening Date February 21, 2013 Issue Closing Date March 15, 2013 Issue Timetable Date Acceptance of Forms Uploading of Forms February 21, 2013 TO March 14, 2013 10:00 am to 5:00 pm 10.00 am to 5.00 pm March 15, 2013 10:00 am to 3:00 pm 10.00 am to 5.00 pm Process of Making Applications Step Description Responsibility 1 Investor submits a signed Application Form to. Investor 2 needs to ensure that the Application Form has been completely filled in and the required backup / KYC documents are provided. also needs to ensure that the Investor has used the Application Form of I-Sec as the Lead Broker. 3 to provide acknowledgement slip to the Investor with proper date stamp 4 to upload the applications in the online system of stock exchanges on the same day prior to 5:00 pm ##. 5 In case of ASBA Applications: to submit the Application Form to the SCSBs for further processing. In case of Non-ASBA Applications: to submit the Application Form along with the cheque / demand draft to the escrow collection banks for fund transfer. Note: in the issue shall be made on first-come first-serve basis, based on the date of upload of each application on the electronic system stock exchanges. Sub consortium members are equired to ensure that all applications received prior to 5:00 pm on a particular day are uploaded prior to 5:00 pm on the same day. ## Kindly note that the Application Forms collected on a particular day need to be uploaded on the online system of stock exchanges on the same day prior to 5:00 pm, prior to submitting such Application Forms to the SCSBs or the Escrow Collection Banks. Applications submitted to Escrow Collection Banks without uploading on the online system of stock exchanges are liable to be rejected and such applicants shall not receive any allotment in the Issue. If any application is not uploaded on the online system of stock exchanges prior to 5:00 pm on a particular day, due to any delay in receiving the form from the Investors, such application may get submitted for the next day in the online system of stock exchange. I-Sec shall not be liable for any non allotment or lesser allotment due to such delay.
Due to limitation of time available for uploading Applications on the Tranche Issue Closing Date, Applicants are advised to submit their Application Forms one day prior to the Tranche Issue Closing Date and, no later than 3:00 pm (Indian Standard Time) on the Tranche Issue Closing Date. Applicants are cautioned that in the event a large number of Applications are received on the Tranche Issue Closing Date, there may be some Applications which are not uploaded due to lack of sufficient time to upload. Such Applications that cannot be uploaded will not be considered for allocation under the Issue. I-Sec shall not be liable for any non allotment or lesser allotment to such applicants. General Terms Issue Issuer Lead Managers Issue Size Instrument Issuance Form Credit Rating Security Listing Trustee Housing and Urban Development Corporation Limited ICICI Securities Ltd., Axis Capital Limited, Kotak Mahindra Capital Company Ltd. and SBI Capital Markets Ltd. Base Issue Size of ` 500 crore with an option to retain oversubscription upto Rs. 2,805.66 Crores (the Residual Shelf Limit) Tax Free, Secured, Redeemable, Non-Convertible Debentures having tax benefits u/s 10 (15) (iv) (h) of Income Tax Act, 1961 Both in dematerialized form as well as in physical form, at the option of Applicants CARE : CARE AA+ IRRPL (Fitch) : IND AA+ The security for the Bonds, being a floating first pari-passu charge on present and future receivables of our Company to the extent of amount mobilized under the Issue. Company reserves the right to create first pari-passu charge on present and future receivables for its present and future financial requirements. Proposed to be listed on NSE SBICAP Trustee Company Limited Depositories NSDL and CDSL Registrar to the Issue Karvy Computershare Private Limited Issue Opening February 21, 2013 Issue Closing March 15, 2013 Interest on Application Moneys On : Same as coupon rate for respective categories On Refunds: 5.00% per annum Interest Period: From the date of realization cheque(s)/demand draft(s) or 3 (three) days from the date of receipt Application (being the date of upload of each Application on the electronic Application platform relevant stock exchanges) whichever is later upto one day prior to the Deemed Date of Please note that interest on application money will not be paid to ASBA applicants. Please note that interest will not be paid on monies liable to be refunded in case of invalid applications, applications liable to be rejected, applications which are withdrawn by the applicant
Specific Details on Individual Series Series of Bonds** Tranche II Series 1 Bonds Tranche II Series 2 Bonds Face Value per Bond ` 1,000 ` 1,000 Issue Price per Bond At par i.e. ` 1,000 At par i.e. ` 1,000 Minimum Application 5 Bonds (` 5,000) across all Series of Bonds Size In multiples of One Bond One Bond Market Lot/ Trading Lot One Bond One Bond Amount payable on application Full amount on application Full amount on application Trading Compulsorily in dematerialized form Compulsorily in dematerialized form Tenor 10 Years 15 Years Redemption 10 years from the Deemed Date of 15 years from the Deemed Date of Redemption Amount per Bond Repayment Face Value of Bonds plus any interest that may have accrued at the Redemption Date Repayment Face Value of Bonds plus any interest that may have accrued at the Redemption Date Coupon Rate 7.53% 7.03% 7.69% 7.19% Interest Payment Frequency Annual Annual Annualised Yield 7.53% 7.03% 7.69% 7.19% Deemed Date of Deemed Date of shall be the date on which the Board of Directors/or any duly constituted committee thereof, or the Chairman and Managing Director, approves the Bonds for the Issue. All benefits relating to the Bonds including interest on Bonds (as specified for the Issue in this Prospectus Tranche II) shall be available to the Bondholders from the Deemed Date of. The actual allotment of Bonds may take place on a date other than the Deemed Date of. * Please note that the additional interest of 0.50% p.a shall only be available to the original Allottees under Category IV for the Tranche II Series 1 Bonds and the Tranche II Series 2 Bonds. In the event the Bonds held by the original Allottees under Category IV are sold/ transferred (except in case of transfer of Bonds to legal heir in the event of death original Allottee), the coupon rate shall stand revised to the coupon rate applicable for Allottees falling under Category I, Category II and Category III. Please note that for the purpose of classifying the Investors into various categories, the Applications will be consolidated on the basis of PAN. ** Company shall allocate and Allot Bonds of Tranche II Series 2 to all successful Applications, wherein the Applicants have not indicated their choice relevant Bond series.
Eligible Investor Categories and Allocation Category Who can apply Allocation Public Financial Institutions, scheduled commercial banks, multilateral and bilateral development financial institutions, state industrial development corporations, which are authorised to invest in the Bonds; FIIs and their sub accounts (other than a sub-account which is a foreign corporate or foreign individual), registered with SEBI; Category I Provident funds and pension funds with minimum corpus of ` 25 Up to 25% (Qualified crores, which are authorised to invest in the Bonds; Institutional Insurance companies registered with the IRDA; Buyers) National Investment Fund; Insurance funds set up and managed by the army, navy or air force Union of India or set up and managed by the Department of Posts, India; Mutual funds; and Alternative Investment Funds, subject to investment conditions applicable to them under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012. Category II (Non Institutional Investors) Category III (High Networth Individuals) Category-IV (Retail Individual Investors) Companies within the meaning of section 3 Companies Act and bodies corporate registered under the applicable laws in India and authorised to invest in the Bonds. The following Investors applying for an amount aggregating to above ` 10 lakhs across all Series of Bonds in the Issue: Resident Indian individuals; Eligible NRIs on a repatriation or non repatriation basis; and Hindu Undivided Families through the Karta. The following Investors applying for an amount aggregating to up to and including ` 10 lakhs across all Series of Bonds in the Issue: Resident Indian individuals; Eligible NRIs on a repatriation or non repatriation basis; and Hindu Undivided Families through the Karta. Up to 15% Up to 20% Up to 40% * Note: Not more than 10% Issue Size will be allocated to Investors who are FIIs (Category I), Eligible NRIs (Categories III and IV) and all other non resident Applicants across all Categories. shall be made on a first come first serve basis across all categories, on a date priority, to be determined on the basis date of uploading of each application into the electronic system of relevant stock exchanges. If there is any under subscription in any Portion, priority in s will be given in the following order: i) Category IV Portion; ii) Category III Portion; iii) Category II Portion; and iv) Category I Portion (For further details, please refer to Shelf Prospectus dated December 13, 2012 and Prospectus Tranche II dated February 13, 2013 of Housing and Urban Development Corporation Limited) The Application forms can be downloaded from on our website www.icicisecurities.com.