Bonds Info IRFC

Hi @nithin

COuld u help me wihth some info on IRFC bonds plz?

I was looking ot invest some savings money into it.

I found IRFC n1 & IRFC N2 on Zerodha, but the liquidity here seems ot be quite low.
Most of the sellers were having quantity of 1 bond each (for N2) & Around 10-15 bonds each on N1

  1. Where can I get more info about bonds in detail? I read a document on SEBI website, but its too much info about the primary issue and almost no info about the secondary market.
  2. How can I get adequate fill for my order quantity when liquidity is so low (say investment amount of 10-20lac)
  3. Can they be traded like stocks or is there a lock in etc?

On Irfc’s website, there’s only info about the issue in 2016, but not about buying from secondary market.

I’m specifically looking for Tax free bonds, and IRFC’s interest rate looked very attractive.

IRFC N1 and N2 tax-free bonds with coupon rates 8% and 8.1% respectively, have a decent amount of liquidity for the amount you wish to invest in it.

Check the market depth on Kite, IRFC N1 bonds trading at 1449 has an offer quantity of 585 and IRFC N2 bonds trading at 1221 has an offer quantity of 1677.

If you wish to invest Rs.10 lacs in each bond then that would be approximately 690 quantity for N1 bonds and 820 quantity for N2 bonds. You could definitely pick up this quantity over a certain period of time.


Tx for th einfo

Any insight regarding my other questions?

  1. Any lock in period or freely tradable like shares?
  2. Share are held with the expectation of gain in share value so that we can sell at higher price.
    Bonds are held with expectation of yield and interest, isn’t it?
    What are the market dynamics here?
    How does the yield increase or decrease? Is it fixed? What’s the scenario I’m looking at?
  1. They’re freely tradable, like shares. No lock-in period.
  1. The coupon rates remain the same for N1 and N2 bonds for its term period.

If you notice from the Daily candle charts of IRFC N1, the price range for these bonds so far have been between 1050 and 1200. This is decided by the demand and supply between buyers and sellers, almost like investing into a stock or even Gold for that matter. Like Gold, you receive a fixed interest rate on the bond and you also make a profit on the appreciation of the price of the bond.

Thanks again for the prompt reply

  1. can u shed some light on the yield of the bond and how this varies?
  2. What’st the diff between IRFC n1 & N2,?
    Apart from the interest rate, what is the reason for 2 different bonds?
  3. In the N2, screenshot that u posted, the Ask QTY is 25 only, but the total shows 1677.
    I’m assuming the rest of the quantity is orders with disclosed quantity as 0. Is that correct?

IRFC N1 bond : Coupon rate 8% p.a. for a term of 10 years.
IRFC N2 bond : Coupon rate 8.1% p.a. for a term of 15 years.

In terms of liquidty, you can notice from the depth that N1 bonds are more liquid. The reason for 2 different bonds is because they were released in different tranches with a different design.

No that’s incorrect. The top 5 ask quantity totals up to 25. The remaining of the quantity is not a part of the top 5 ask prices and hence you aren’t able to see it.