Infrastructure Development Finance Company (IDFC) has moved 4% higher to Rs 101 after its board approved fund raising plans up to Rs 4,400 crore through issue of long term infrastructure bonds.
 
“The committee of directors of the company at its board meeting held on January 2, approved to launch the second installment of its tax-saving infrastructure bonds January 11 to raise up to Rs 4,400 crore. The issue will be open for subscription until February 25," IDFC said in a filing to the stock exchanges.
 
The second installment is part of the company’s plan to garner up to Rs 5,000 crore by selling tax-saving infrastructure bonds in the retail market during the current financial year 2011-12. The five-year bonds have a coupon of 9%.
 
The company had already raised Rs 538 crore in the first installment in last month from the first tranche of tax-saving long-term infrastructure bonds. Investments of up to Rs 20,000 in infrastructure bonds are exempt from income tax for individuals.
 
The stock opened at Rs 97.80 and touched high of Rs 101.55 on the National Stock Exchange (NSE). A combined 4.25 million shares have changed hands on the counter so far on the NSE and BSE.