IREDA  Tax Free Bond – IREDA will open its public issue of tax free, secured, redeemable,non convertible bonds of face value of Rs. 1,000 each, in the nature of debentures, having tax benefit under section 10 (15)(iv)(h) of Income Tax Act, 1961, an amended for a amount of Rs. 1,000 crores with an option to retain over subscription upto Rs. 716 Crores aggregating upto a total  of Rs. 1,716 crores.   Issue open as on 8 Jan 2016 for subscription. (Early close 11 Jan 2016)

[wptabs style=”wpui-green” mode=”horizontal”] [wptabtitle] Product Note[/wptabtitle] [wptabcontent]

IREDA Tax Free Bond Issue Highlight –

 

IssuerIREDA Tax Free Bond Tranche 1
Type of InstrumentSecured, Redeemable, NCD
Issue Open8 Jan 2016
Issue Close22 Jan 2016 **
Issue Size1,716 Cr
Face ValueRs. 1,000
Min. Application Size5 Bonds (Rs.5000) & multiply of 1 Bond thereafter
InterestAnnual
Mode of AllotmentD'mat & Physical Form
RatingAA+ by ICRA
ListingBSE

  • Allotment will be on ” First Come First Serve basis.
  • Retail Individual Investors can invest upto Rs. 10,00,000  (Ten Lakhs) across all series of bonds in this issue
  • Per PAN only Application acceptable otherwise your all money refund
  • Applicant must use only CTS compliant instruments and refrain from using NON-CTS 2010 instruments for payment of the Application Amount.
  • *** option for early closer (If Issue Subscribe fully then Issue close one day notice)

IREDA Tax Free Bond Interest Rate Chart

10 Years15 Years20 Years
For Category I,II, III
Series 1 ASeries 2 ASeries 3 A
Coupon Rate %7.28%7.49%7.43%
Category IV ( Retails)
Series 1 BSeries 2BSeries 3 B
Coupon Rate %7.53%7.74%7.68%
Interest PaymentAnnualAnnualAnnual

Cheque Details

Retail Investor :  “ Escrow Account – IREDA Public Issue II “

Who can Apply

Category I  :  Public Financial Institutions, Scheduled Comm Bank,  PF, PPF, Insurance Company, Mutual Fund etc

Category II -Corporates  :  Companies, Statutory Bodies/corporations, Co-operative Banks, Societies, Trusts, Regional Bank, LLP, Partnership Firms

Category III – HNIs :  The following investors applying for an amount aggregating to above Rs. 10 lakhs across all Series of Bonds in the Issue; 

  • Resident Indian individuals ; and
  • Hindu Undivided Families through the Karta.

Category IV – Retail Individual Investor : The following investors applying for an amount aggregating to up to and including Rs. 10 lakhs across all Series of Bonds in the Issue; 

  • Resident Indian individuals ; and
  • Hindu Undivided Families through the Karta.

 

  Note :   Application will be rejected if banked without uploading in the electronic system of the recognized stock exchange. (Bidding process)[/wptabcontent]

[wptabtitle] About Issue[/wptabtitle] [wptabcontent]

About the Issuer -IREDA Bonds

Indian Renewable Energy Development Agency Limited (IREDA) was incorporated on March 11, 1987 as a public limited company under the Companies Act, 1956 and was set up by the Government of India (GoI) under the administrative control of Ministry of New and Renewable Energy (MNRE), GoI to promote, develop and extend financial assistance for renewable energy and energy efficiency projects.

IREDA is non-banking financial institution registered with RBI under the RBI Act, 1934 engaged in extending financing services to projects and schemes related to renewable energy and energy efficiency.

The Company enters into memorandum of understanding with the MNRE on annual basis (“MoU”). Pursuant to the MoU, the annual targets are set with respect to loan sanctions, disbursements, profitability and other dynamic parameters. For the Fiscal year 2013 and 2014, the actual achievement of Company vis-a-vis the targets set out in the MoU were rated as ‘Very Good’ and “Excellent” respectively , by the Department of Public Enterprises, Ministry of Heavy Industries and Public Enterprises, GoI.

IREDA provides financial assistance to the following renewable and energy efficiency projects:

  • Wind Power
  • Hydro Power
  • Biomass Power Co-generation
  • Energy Efficiency & Conservation
  • Soar Energy
  • Waste to Energy & Miscellaneous

 

For six month period ended September 30, 2015 and the Fiscal 2015, 2014 and 2013, company’s profits after interest but before tax was Rs. 202.42 crore and Rs. 378.58 crore, Rs. 340.30 crore, Rs. 250.58 crore, respectively, and profits after tax was Rs. 148.05 crore and Rs. 271.91 crore, Rs. 240.51 crore, Rs. 202.65 crore, respectively.

IREDA’s outstanding loan portfolio has grown at a CAGR of 15.52% from Rs. 6,674.90 crores as of March 31, 2013 to Rs. 8,908.22 crores as of March 31, 2015. Similarly, profit after tax has grown at a CAGR of 15.84% over a period of three years from Rs. 202.65 crores for Fiscal 2013 to Rs. 271.91 crores for Fiscal 2015.

IREDA’s gross NPA was 5.92%, 5.34%, 4.18% and 3.86% and net NPA was 3.52%, 3.84 %, 2.46 %, and 0.93 % as at September 30, 2015, March 31, 2015, 2014 and 2013 respectively.

Under the categorisation of Public Sector Enterprises, Company was upgraded from ‘Schedule C’ to ‘Schedule B‘ by the Department of Public Enterprises, Ministry of Heavy Industries and Public Enterprises, Government of India with effect from Jan., 4 2010.

IREDEA Website Link

  [/wptabcontent] [wptabtitle] Subscription Data[/wptabtitle] [wptabcontent]

IREDA Tax Free Bond Subscription Data

Cat ICat IICat IIICat IVTotal
Issue Size343.20 Cr343.20 Cr343.20 Cr686.4 Cr1,716 Cr
8 Jan 2016Subscribe10 Cr655.50 Cr398.93 Cr839.41 Cr1903.83
No of times0.031.911.161.221.11
UnSubscribe333.20Subscribe FullySubscribe FullySubscribe FullySubscribe Fully

Retail Portion Fully Subscribe. If you invest  1 lakhs your allotment my be 81000 Approximate as per first day data. If you Apply Monday you are not received any allotment (First come First Serve Basis).

 [/wptabcontent] [wptabtitle] Taxation[/wptabtitle] [wptabcontent]

 Benefit to Investor

  • The Income by way of Interest on these Bonds is fully exempt from Income Tax as per provision under section 10(15)(iv)(h) of Income Tax  Act.
  • No TDS  (Interest from Bond do not form part of Total Income)
  • Capital Gain Benefit – Capital gain arising on the transfer of listed bonds shall be taxed @ 10% without Indexation or @ 20% with Indexation.
  • Short Term Capital Gain  on the transfer of listed bonds, where bonds are held for a period of not more than 12 months would be taxed at normal rates of tax in accordance with and subject to the Provision of the I.T. Act.

 

 

 

 

 

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[wptabtitle] Application Form[/wptabtitle] [wptabcontent]

Application Form for SBI Capital  – Application Form Download 

IssuerHUDCOHUDCO
Tranche/SeriesTranche IIwewew#colspan#
Issue Period
TypeTax Free BondTax Free Bond
Face Value10001000
BSE Code
NSE CodeHUDCO.N6HUDCO.N6
ISIN NoINE031A07873INE031A07881
Date of Allotment28-Mar-1328-Mar-13
Date of Redemption28-Mar-2328-Mar-28
Coupon Rate7.03% + Retail .50 extra7.19% + Retail .50 extra

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[wptabtitle] Allotment/Listing[/wptabtitle] [wptabcontent]

The Bonds shall be listed on the BSE within 12 working days from date of Issue closure Date.

Tax Free BondIREDA
Issue Open8 Jan 2016
Issue Close22 Jan 2016
Issue RegistrarKarvy Computershare Pvt Ltd
Listing ExchangeBSE
Allotment Date
Listing Date
Interest Payment Date
Face Value1000
Circular Ref. No

Source:  Issue Prospectus 

Disclaimer: “Invest only on the basis of prospectus”

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