IRFC Tax Free Bond – Issue open 21 Jan 13
Indian Railway Finance Corporation Ltd (IRFC) is launching a Tax Free Bond Issue to raise Rs. 8,886 Cr. As per CBDT notification, IRFC authorised to issue bonds up to Rs. 10,000 Cr during 2013 financial year.
IRFC already raised Rs. 1,114 Cr through Private Placement of Bonds.
Issue Highlight –
| Issuer | Indian Railway Finance Corporation Ltd (IRFC) |
|---|---|
| Type of Instrument | Secured, Redeemable, NCD |
| Issue Open | 21 Jan 2013 |
| Issue Close | 29 Jan 2013 |
| Issue Size | --------Cr. with right to retain oversubscription up to Rs. ------Cr. (Shelf Limit) |
| Face Value | Rs. 1,000 |
| Min. Application Size | 5 Bonds (Rs.5000) & multiply of 1 Bond thereafter |
| Interest | Annually |
| Mode of Allotment | D'mat & Physical Form |
| Rating | CRISIL AAA/Stable by CRISIL CARE AAA by CARE , ICRA AAA by ICRA |
| Listing | NSE/BSE |
Issue Structure –
| Options | Series 1 | Series 2 |
|---|---|---|
| Tenor | 10 years | 15 years |
| Coupon Rate % (Interest) | ||
| Category - I, II, III | 7.18% | 7.34% |
| Category - IV (Retail) | 7.68%* | 7.84%* |
| Frequency of Interest | Annual | Annual |
| Redemption Date | At the end of 10 Yr. from Deemed date of allotment | At the end of 15 Yr. from Deemed date of allotment |
*Additional Interest of 0.50% p.a. shall only be available to the original Allottees under category IV. In the event of Sold/transfer , the Coupon rate shall stand revised to the coupon rate applicable for allottee falling under Category I, II , III.
Cheque Details-
Retail Investor : ” IRFC Tax Free Bond 2012 – Escrow Account – R ”
NRI Investor :
Bankers : Axis Bank, IDBI Bank, IndusInd Bank, Kotak Mahindra Bank, ICICI Bank, PNB, SBI, Union Bank
Yes Bank, HDFC Bank
About the Issuer
IRFC, the financial arm of Indian Railway.
The fund raise to this issue will be utilized by the company towards financing the acquisition of rolling stock that will be leased to the ministry of railways. A apart of fund raised will also be utilized for funding projects approved by the ministry of railways and executed by Rail Vikas Nigam.
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 IT act.
- No TDS
- Capital Gain Benefit – capital gain arising on the transfer of listed bonds shall be taxed @ 10% without Indexation or @20% with Indexation.
Issue Drawback
In case the Bonds held by the original Allottees under Category IV (Retail) are sold/transferred (except in case of transfer of Bonds to legal heirs in the event of death of original Allottee), the coupon rate shall stand revised to the coupon rate applicable for Allottees falling under Cat I,II,III portions
In simple word, additional 0.50% interest only for first investor, No benefit for Retail Investor buy from Open Market.
Allotment/Listing
Listing Date :
Friday, February 22, 2013 in the list of “F GROUP”.
The Bond will listed on BSE & NSE within 12 working days of the issue closing date.
Allotment Details :
| Tax Free Bond | Indian Railway Finance Corporation Ltd. (Tranche I) |
|---|---|
| Issue Open | 21 Jan 2013 |
| Issue Close | 8 Feb 2013 |
| Issue Registrar | Karvy Computershare |
| Listing Exchange | BSE |
| BSE Script Code | 961755 (10 yrs) & 961756 (15 yrs) |
| BSE Script ID | 71IRFC2023 & 734IRFC2028 |
| Coupon Rate | 7.18 (10 yrs) & 7.34 (15 yrs) Additional 0.50 Category IV |
| Allotment Date | Jan 22, 2013 |
| Listing Date | Jan 25, 2013 |
| ISIN No | INE053F07561 (10 Yr Bond) |
| INE053F07579 (15 Yr Bond) | |
| Maturity Date | 19 Feb 2023 (10 yrs) |
| 19 Feb 2028 (15 yrs) | |
Registrar of Issue :
Karvy Computershare Pvt Ltd
Trustee for Bondholders :
SBICAP Trusty Company Ltd
Depositories :
CDSL/ NSDL
Depositories :
NSDL & CDSL
Interest Payment Date :
15 Oct every year
Subscription Data
Subscription details for IRFC Tax Free Bonds Day wise . First Day Category I is fully subscribe.
| Category | No of Bonds Offer | No. of Bonds Subscribe | No of time Subscribe |
|---|---|---|---|
| 8 Feb 2013 | |||
| Category I | 20,00,000 | 2,54,01,750 | 12.70 |
| Category II | 20,00,000 | 2,15,67,790 | 10.78 |
| Category III | 20,00,000 | 22,65,119 | 1.13 |
| Category IV | 40,00,000 | 45,74,757 | 1.14 |
| Total | 1,00,00,000 | 5,38,09,416 | 5.38 |
| 7 Feb 2013 | |||
| Category I | 20,00,000 | 1,23,50,200 | 6.18 |
| Category II | 20,00,000 | 1,69,28,800 | 8.46 |
| Category III | 20,00,000 | 20,72,519 | 1.04 |
| Category IV | 40,00,000 | 40,37,451 | 1.01 |
| Total | 1,00,00,000 | 3,53,88,970 | 3.54 |
| 6 Feb 2013 | |||
| Category I | 20,00,000 | 96,00,200 | 4.80 |
| Category II | 20,00,000 | 1,16,70,450 | 5.84 |
| Category III | 20,00,000 | 18,16,019 | 0.91 |
| Category IV | 40,00,000 | 37,25,196 | 0.93 |
| Total | 1,00,00,000 | 2,68,11,865 | 2.68 |
| 5 Feb 2013 | |||
| Category I | 20,00,000 | 96,00,200 | 4.80 |
| Category II | 20,00,000 | 1,16,69,450 | 5.83 |
| Category III | 20,00,000 | 17,82,219 | 0.89 |
| Category IV | 40,00,000 | 35,31,327 | 0.88 |
| Total | 1,00,00,000 | 2,65,83,196 | 2.66 |
| 4 Feb 2013 | |||
| Category I | 20,00,000 | 94,00,200 | 4.70 |
| Category II | 20,00,000 | 1,16,68,950 | 5.83 |
| Category III | 20,00,000 | 17,63,219 | 0.88 |
| Category IV | 40,00,000 | 33,85,380 | 0.85 |
| Total | 1,00,00,000 | 2,62,17,749 | 2.62 |
| 1 Feb 2013 | |||
| Category I | 20,00,000 | 84,00,200 | 4.20 |
| Category II | 20,00,000 | 1,16,17,950 | 5.81 |
| Category III | 20,00,000 | 16,75,219 | 0.84 |
| Category IV | 40,00,000 | 32,22,881 | 0.81 |
| Total | 1,00,00,000 | 2,49,16,250 | 2.49 |
| 31 Jan 2013 | |||
| Category I | 20,00,000 | 84,00,200 | 4.20 |
| Category II | 20,00,000 | 1,16,17,950 | 5.81 |
| Category III | 20,00,000 | 16,71,219 | 0.84 |
| Category IV | 40,00,000 | 30,87,118 | 0.77 |
| Total | 1,00,00,000 | 2,47,76,487 | 2.48 |
| 30 Jan 2013 | |||
| Category I | 20,00,000 | 83,00,200 | 4.15 |
| Category II | 20,00,000 | 1,16,08,950 | 5.80 |
| Category III | 20,00,000 | 16,57,919 | 0.83 |
| Category IV | 40,00,000 | 29,77,557 | 0.74 |
| Total | 1,00,00,000 | 2,45,44,626 | 2.45 |
| 29 Jan 2013 | |||
| Category I | 20,00,000 | 82,00,200 | 4.10 |
| Category II | 20,00,000 | 1,15,73,950 | 5.79 |
| Category III | 20,00,000 | 16,24,613 | 0.81 |
| Category IV | 40,00,000 | 28,29,901 | 0.71 |
| Total | 1,00,00,000 | 2,42,28,670 | 2.42 |
| 28 Jan 2013 | |||
| Category I | 20,00,000 | 76,00,200 | 3.80 |
| Category II | 20,00,000 | 90,52,050 | 4.53 |
| Category III | 20,00,000 | 14,51,919 | 0.73 |
| Category IV | 40,00,000 | 23,63,652 | 0.59 |
| Total | 1,00,00,000 | 2,04,67,821 | 2.05 |
| 24 Jan 2013 | |||
| Category I | 20,00,000 | 48,50,100 | 2.43 |
| Category II | 20,00,000 | 87,61,150 | 4.38 |
| Category III | 20,00,000 | 10,92,700 | 0.55 |
| Category IV | 40,00,000 | 16,44,696 | 0.41 |
| Total | 1,00,00,000 | 1,63,48,646 | 1.63 |
| 23 Jan 2013 | |||
| Category I | 20,00,000 | 45,00,100 | 2.25 |
| Category II | 20,00,000 | 34,28,750 | 1.71 |
| Category III | 20,00,000 | 10,78,400 | 0.54 |
| Category IV | 40,00,000 | 1,03,23,743 | 1.03 |
| 22 Jan 2013 | |||
| Category I | 20,00,000 | 42,00,100 | 2.10 |
| Category II | 20,00,000 | 33,23,750 | 1.66 |
| Category III | 20,00,000 | 10,03,000 | 0.50 |
| Category IV | 40,00,000 | 10,08,317 | 0.25 |
| Total | 1,00,00,000 | 95,35,167 | 0.95 |
| 21 Jan 2013 | |||
| Category I | 20,00,000 | 40,50,000 | 2.03 |
| Category II | 20,00,000 | 32,23,250 | 1.61 |
| Category III | 20,00,000 | 1,65,300 | 0.08 |
| Category IV | 40,00,000 | 5,34,475 | 0.13 |
| Total | 1,00,00,000 | 79,73,075 | 0.80 |
Downloads
Document related to ongoing Tax Free Bond Issue :
- IRFC Tax Free Bond FAQ’s (NRI)
- IRFC Tax Free Bond FAQ’s
- IRFC Tax Free Bond Document Required
- IRFC Tax Free Bond Banking Matrix
- IRFC Tax Free Bond Allotment Listing Details PDF
Note : Application must be bided before getting submitted with the collection bankers. Kindly ensure to be applications at your broker before banking.
