IDBI to raise Rs 1,500 cr from Flexibond issue

MUMBAI, DEC 10: The Industrial Development Bank of India (IDBI) will tap the capital market with a Rs 1,500 crore issue of IDBI Flexibond...

MUMBAI, DEC 10: The Industrial Development Bank of India (IDBI) will tap the capital market with a Rs 1,500 crore issue of IDBI Flexibonds-5, including a green-shoe option of Rs 750 crore.

The issue, which opens on December 21 and closes on January 14, has retained Regular Income Bond and Growing Interest Bond contained in the last issue, while adding two new instruments — Multi-option Bond and Infrastructure (Tax saving) Bond.

IDBI has obtained permission from the Securities and Exchange Board of India (SEBI) to raise up to Rs 5,000 crore in 1998-99. In the first tranche of Flexibonds, it raised Rs 1,342.71 crore in September-October 1998.

The minimum investment in every instrument has been kept at Rs 5,000 or one bond, while there is no limit for maximum investment. However, in regular income bond, if the investor opts for either quarterly or half-yearly interest payment options, minimum investment will be Rs 20,000 or Rs 10,000 respectively.

IDBI has mobilised about Rs 5,500 crore through the fourprevious issues of flexibonds from over 26 lakh investors.