NHAI raises Rs10,000 cr through tax-free bonds
The National Highways Authority of India (NHAI) has recently raised an amount of Rs10,000 crores by issuing tax-free bonds of which Rs1,547.87 crore came from the retail, Rs4,452.13 crore came from the High Net-worth Investors (HNIs) and Rs4,000 crores came from the Qualified Institutional Buyers (QIBs).
No commission to the Lead Managers has so far been paid. However, a commission of 0.82% and 1.08% plus service tax have been authorized to them for QIBs and the other two categories respectively and will be reimbursed to them on receipt of the proof of remittance of the same to the Government account.
Public issue by Department of Disinvestment and public issue of tax free bonds are two different processes. The brokerage agreed with the Lead Managers alongwith other expenses are within the ceiling fixed by the Ministry of Finance. Ministry of Finance, Department of Revenue authorized commission on the issue of tax free bonds with a cap of maximum of a flat fee of 1.25% of the issue size.