ENAM DIRECT

BOND ISSUE

Infrastructure Development Finance Company Ltd

Company profile Issue highlights

IDFC is a leading knowledge-driven financial services company in Issue size: Not exceeding Rs 2,929 cr
India and plays a central role in advancing infrastructure development
Face value: Rs 5,000
in the country. IDFC is a one-stop-shop for all products and services
Minimum Application: Rs 10,000
across the infrastructure value chain. Established in 1997 as a private
or 2 bonds.
sector enterprise by a consortium of public and private investors, the
Company listed its Equity Shares in India pursuant to an initial public Lock-in Period: 5 years

offering in August 2005.

Salient features of the bond issue (Tranche II) Issue summary

z Second Tranche of public issue of bonds by an infrastructure Issue opens: 17th January 2011

finance company under Sec 80 CCF Issue closes: 04th February 2011

z Credit rating agency ICRA has rated the Bonds under this offer Lead managers: ENAM Securities
as “LAAA” and FITCH has rated the bonds “AAA” with stable HDFC Bank, ICICI Securities, Kotak
outlook, indicating highest safety. Mahindra Capital, JM Financial and

z These bonds will be issued only to Resident Indian Individuals IDFC Capital

(Major) and HUF. Registrar: Karvy Computershare Pvt.

BOND WATCH

z The bonds are fully secured with first floating pari pasu charge Ltd.

over certain receivables of the Company and first fixed pari pasu Debenture Trustees: IDBI
charge over specified immovable properties of the Company. Trusteeship Services Ltd.
The security cover is 1.0 times of the outstanding Bonds at any
point in time.
Credit rating by FITCH
z The Bonds bear an attractive combination of coupon rate 8%
Rating Issue Type
p.a. coupled with tax benefits of upto Rs 20,000 under Sec 80
AAA/stable Infrastructure Bonds
CCF.
z There are 2 investment options, suiting the needs of different
categories of investors. Credit rating by ICRA

z No TDS shall be deducted from interest on Tranche 2 Bonds, if Rating Issue Type
such interest does not exceed Rs 2,500 in a financial year. LAAA Infrastructure Bonds

z The bonds will be listed on NSE & BSE and can be traded after The rating of FITCH and ICRA
the 5 year lock – in period. indicates highest safety and stable
z Investors can mortgage or pledge these bonds to avail loans outlook. The ratings provided by
after the lock-in period. FITCH and ICRA may be

z Under Section 80 CCF of the I.T. Act, an investor in such suspended, withdrawn or revised at
infrastructure bonds will be entitled to tax deduction of any time by the assigning rating
investments of up to Rs 20,000. The deduction is over and agency and should be evaluated
above the Rs 1,00,000 deduction available under section 80C, independently of any other rating.
80CCC & 80CCD read with section 80CCE.

For additional information & risk factors please refer to the Prospectus
Infrastructure Development Finance Company

Issue Structure:

Maturity: The Bonds, with a maturity of 10 years, will be issued in 2 series.

Face Value: Each Bond has face value of Rs 5,000 each.

Minimum application: Rs 10,000 or 2 bonds. The bonds can be of the same series or 2
bonds across different series.

Lock in: 5 years from the date of allotment.

Buyback facility: Available for both the Series 1 & 2.

Bond Issue Profile: (Tranche II)

Options Series I Series II

Interest Payment Annual Cumulative

Minimum Application 2 bonds and in multiples of one bond thereafter

Face Value (Rs. / Bond) Rs.5,000/- Rs.5,000/-

Coupon (%) p.a. 8% N/A

Yield on Maturity (%) p.a. 8.0%

8.0% compounded annually

Maturity 10 years 10 years

Redemption Amount per

Rs 5,000 Rs 10,800
bond

Buy back Facility YES YES

Buyback Date (from

5 years 5 years
allotment)
The period beginning not The period beginning not
before 9 months prior to the Buyback before 9 months prior
Buyback Intimation Period Date and to the Buyback Date and
ending not later than 6 months prior to ending not later than 6 months
the Buyback Date prior to the Buyback Date

Buy back Amount (Rs) Rs 5,000 per bond Rs 7,350 per bond

Buy back Yield (%) 8.0% 8.0% compounded annually

* Assuming investors exercise the buy back option

For additional information & risk factors please refer to the Prospectus 2
Infrastructure Development Finance Company

Investors to benefit from 80 CCF Benefits:

z The Bonds are classified as “long term infrastructure bonds” and are being issued in terms of

section 80 CCF of the Income Tax Act.

z Bonds offer an additional window of tax deduction of investments of up to Rs 20,000.

z The deduction is over and above the Rs 1,00,000 deduction available under section 80C, 80CCC &

80CCD read with section 80CCE

z It helps in intermediating the retail investor’s savings into infrastructure sector directly.

z In the event that any applicant applies for the bonds in excess of Rs 20,000 p.a., the aforestated tax

benefit shall be available to such applicant only to the extent of Rs 20,000 p.a.

For additional information & risk factors please refer to the Prospectus 3
Infrastructure Development Finance Company

ENAM Securities Direct Pvt. Ltd.

201, Laxmi Towers, 'A' Wing, Bandra-Kurla Complex, Bandra [East], Mumbai – 400 051.
Board: 6680 3600 Helpline: 6680 ENAM Fax : 6680 3700
Website: www.enam.com Email: directresearch@enam.com

This document has been prepared by Enam Securities Direct Private Limited – Privileged Client Group. Affiliates of Enam Securities Direct Private Limited focused on
Institutional Equities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. The views and
opinions expressed in this document may or may not match or may be contrary with the views, estimates, rating and target price of the Affiliates research report.

The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or
distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent.

This report and information herein is solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe
for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is
suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their
own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of
independent judgement by any recipient.

Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies
referred to in this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The
investment discussed or views expressed may not be suitable for all investors. Certain transactions -including those involving futures, options and other derivatives as well as
non investment grade securities - involve substantial risk and are not suitable for all investors.

Enam Securities Direct Private Limited has not independently verified all the information given in this document. Accordingly, no representation or warranty, express or
implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this document.

The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the views
expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement
as may be required from time to time without any prior approval.

Enam Securities Direct Private Limited, its affiliates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as
principal or agent in or for the securities mentioned in this document. They may perform or seek to perform investment banking or other services for, or solicit investment
banking or other business from, any company referred to in this report. Each of these entities functions as a separate, distinct and independent of each other. The recipient
should take this into account before interpreting the document.

This report has been prepared on the basis of information that is already available in publicly accessible media or developed through analysis of ENAM Securities Direct Private
Limited. The views expressed are those of the analyst and the Company may or may not subscribe to all the views expressed therein.

This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or
published, copied, in whole or in part, for any purpose. Neither this document nor any copy of it may be taken or transmitted into the United State (to U.S. Persons), Canada, or
Japan or distributed, directly or indirectly, in the United States or Canada or distributed or redistributed in Japan or to any resident thereof.

This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other
jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject Enam Securities Direct Private Limited to any
registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of
investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including
lost revenue or lost profits that may arise from or in connection with the use of the information.

Copyright in this document vests exclusively with ENAM Securities Direct Private Limited.

For additional information & risk factors please refer to the Prospectus 4