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
[wptabs style=”wpui-green” mode=”horizontal”] [wptabtitle] Product Note[/wptabtitle] [wptabcontent]
IREDA Tax Free Bond Issue Highlight – [ws_table id=”360″] *** option for early closer (If Issue Subscribe fully then Issue close one day notice)
Limit for Retail Investor is 10 lakhs (Cat IV)
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Allotment First come First Serve Basis
IREDA Tax Free Bond Interest Rate Chart[ws_table id=”361″]
NRI not allow to invest in this Issue
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 . [ws_table id=”362″]
[wptabtitle] Allotment/Listing[/wptabtitle] [wptabcontent]
Source: Issue Prospectus
Disclaimer: “Invest only on the basis of prospectus”