Ennore Coke
Ennore Port, owned by Indian Government, is the only port among 12 major ports of India to have a corporate structure. The company has entered the debt capital market on 28th February 2013, with a public issue of Tax Free Bonds of face value of Rs.1,000 each, in the nature of Secured Redeemable Non Convertible Debentures. Issue, closing on 15th March, has a size of Rs.500 crore, with an option in company’s hand to retain an oversubscription upto Rs.500 crore, aggregating Rs. 1,000 crore. Bonds, proposed to be listed on BSE, are rated AA+ by BRICKWORK and AA- by CARE and CRISIL.
The current bonds are being offered under two different series with features as under:-
| Particulars | Series 1 | Series 2 |
| Tenor | 10 Years | 15 Years |
| Frequency of Interest Payment | Annual | Annual |
| Minimum Application Size | Rs.5,000 (5 bonds) | Rs.5,000 (5 bonds) |
| In Multilpes of | Rs.1,000 (1 bond) | Rs.1,000 (1 bond) |
| Face Value (Rs/Bond) | Rs.1,000 | Rs.1,000 |
| Issue Price (Rs/Bond) | Rs.1,000 | Rs.1,000 |
| Coupon Rate (%) p.a. |
| |
| 7.51% p.a. | 7.67% p.a. |
| 7.01 p.a. | 7.17% p.a. |
| Put / call Option | None | None |
*Individuals and HUFs can apply for a maximum of Rs. 10 lakh in this category
Bonds are to be issued both in physical and dematerialized form, hence a demat account is not necessary to buy these bonds. Also, the bonds do not have any lock-in period.
The Series 2 bonds are comparable to 11.10% pre-tax return earned on other fixed income instruments, assuming the highest tax bracket of 30.9% for retail individuals, which are comparable to HUDCO bonds which are currently open for subscription and offering among the highest returns in form of interest rate. No bank fixed deposits are offering such rates, and that too for such long durations.
To conclude, Ennore Port issue is suitable for those looking to park funds in fixed income assets when interest rates are expected to head south, in the coming months.