IREDA Tax Free Bond -Issue Open 17 Feb 2014

IREDA  Tax Free Bond – Issue open 17 Feb 2014  Indian Renewable Energy Development Agency Ltd (IREDA) is coming out with a Tax Free, Secured, Redeemable bond issue face value 1000 each, aggregating  to 1000 Cr. Coupon rate is very attractive 8.80% , Issue size is very small so Issue may be first day . Issue Close 4 Mar, allotment 13 mar, listing 19 Mar 2014 

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IREDA Tax Free Bond Issue Highlight – 

Limit for Retail Investor is 10 lakhs (Cat IV)

Allotment First come First Serve Basis

IREDA Tax Free Bond Interest Rate Chart

NRI not allow to invest in this Issue

Cheque Details

Retail Investor :  Escrow Account – IREDA Public Issue

  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

IREDA, a non-banking financial institution registerd with RBI under the RBI Act, 1934 engaged in extending financing services to projects and schems for generating electricity and energy through renewable sources and coserving energy through enery efficiency.

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

The GoI has been regulary providing finacial support in the form of equity infusion and has also guaranteed loans raised from international agencies. In the Union Budget 2013-14, the Government of India announced allocation of funds from the National Clean Energy Fund to Company for the period of five years, for on-lending to viable renewable energy projects by way of refinancing part of the loan at concessional rate of interest.

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.

 Benefit to Investor

The Income by way of Interst on these Bonds is fully exempt from Income Tax as per provision under section 10(15)(iv)(h) of Income Tax  Act.

No TDS  (Interst 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 accordence with and subject to the Provision of the I.T. Act.

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

IREDATax Free Bond Subscription Data .

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

Source:  Issue Prospectus 

Disclaimer: “Invest only on the basis of prospectus”

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