NTPC Tax Free Bond – Issue open 23 Sep 2015 & Close on 30 Sep 2015
NTPC is coming out with a Tax Free, Secured, Redeemable non-convertible bond for an amount of Rs. 400 Cr.with an option to retain of up to 300 Cr. for issuance of additional bonds aggregating to a total of up to Rs. 700 Cr during fiscal 2016. ISSUE FULLY SUBCRIBE
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[wptabtitle] Product Note[/wptabtitle] [wptabcontent]
Issue Highlight –
| Issuer | NTPC Ltd |
|---|---|
| Type of Instrument | Secured, Redeemable, NCD having tax benefit u/s 10 (15) (iv) (h) |
| Issue Open | 23 Sep 2015 |
| Issue Close | 30 Sep 2015 (with option of early closure or extension) |
| Issue Size | 700 Cr. |
| Face Value | Rs. 1,000 |
| Min. Application Size | 5 Bonds (Rs.5000) & multiply of 1 Bond thereafter (across all series bonds) |
| Interest | Annually |
| Mode of Allotment | D'mat only |
| Rating | AAA by CRISIL ICRA & CARE |
| Listing | Proposed on BSE & NSE |
| Interest on Application Money | On Allotment : same as coupon Rate On Refund : 5.00% P.A. |
| Referance | Prospect Page No 148 to 153 |
NTPC Issue Structure –
| Option | Option 1 | Option 2 | Option 3 | |||
|---|---|---|---|---|---|---|
| Tenor | 10 Yr | 15 Yr | 20 Yr | |||
| Coupon | Rate | |||||
| Category - I, II, III | Series 1A | 7.11% | Series 2A | 7.28% | Series 3A | 7.37% |
| Category - IV (Retail) | Series 1B | 7.36% | Series 2B | 7.53% | Series 3B | 7.62% |
Cheque Details-
Retail Investor : ” NTPC Bonds 2015 Escrow Account “
NRIs (non-repatriation basis) : ” NTPC Bonds 2015 Escrow Account NRI ”
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[wptabtitle] About Issue[/wptabtitle] [wptabcontent]
About the Issuer
NTPC is largest power producer in India in term of both install capacity and generation, with aggregate install capacity of 44,398 MW as on March, 2015
Tax Benefit to Investor
Under the current Tax laws, the following possible Tax benefits, inter alia, will be available to the Bond Holder.
- Interest from Bonds do not from part of Total Income
- Since the Interest Income on the Bonds is exempt, no tax deduction at source ( TDS ) is required. However interest on application money would be liable for TDS as well as would be subject to tax as per present Tax law.
- Long Term Capital Gain – capital gain arising on the transfer of listed bonds shall be taxed @ 10% without Indexation or @20% with Indexation. (for Long Term Capital Gain -more than 12 months)
- Short Term Capital Gains – on the transfer of listed bonds, where bonds held for a period of not more than 12 month would be taxed at the normal rates of tax in accordance with and subject to the provision of the Income Tax Act, 1961.
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[wptabtitle] Subscription Data[/wptabtitle] [wptabcontent]
BASIS OF ALLOTMENT
| Cat 1 | Cat 2 | Cat 3 | Cat 4 | Total | ||
|---|---|---|---|---|---|---|
| APPLY QTY | 2,125,000 | 14,009,608 | 9,197,260 | 17,882,448 | 43,214,316 | |
| ALLOTMENT QTY | 700,000 | 1,750,000 | 1,750,000 | 2,800,000 | 7,000,000 | |
| % ALLOTMENT | 32.94 | 12.49 | 19.03 | 15.66 | 16.20 |
| Cat 1 | Cat 2 | Cat 3 | Cat 4 | Total | ||
|---|---|---|---|---|---|---|
| Issue Size (Cr.) | ||||||
| 5 Oct | Subscribe (Cr ) | |||||
| No of times | ||||||
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[wptabtitle] Allotment/Listing[/wptabtitle] [wptabcontent]
NTPC Allotment Details –
| Tax Free Bond 2015-16 | NTPC Ltd |
|---|---|
| Issue Open | 23 Sep 2015 |
| Issue Close | 30 Sep 2015 (early close 24 Sep) |
| Issue Registrar | Karvy Computershare |
| Listing Exchange | Proposed BSE / NSE |
| Allotment Date | 5 Oct 2015 |
| Listing Date | 08 Oct 2015 |
| Interest Payment Date | 5 Oct each year till the date of maturity |
| Face Value | 1000 |
| Circular Ref. No | NSE/CML/30905 BSE 20151007-2 |
| Series 1A | Series 2A | Series 3A | Series 1B | Series 2B | Series 3B | |
|---|---|---|---|---|---|---|
| Coupon | 7.11% | 7.28% | 7.37% | 7.36% | 7.53% | 7.62% |
| Period | 10 Years | 15 Years | 20 Years | 10 Years | 15 Years | 20 Years |
| ISIN No | INE 733E07JR2 | INE 733E07JS0 | INE 733E07JT8 | INE 733E07JU6 | INE 733E07JV4 | INE 733E07JW2 |
| BSE Script | 961900 | 961902 | 961904 | 961906 | 961908 | 961910 |
| NSE Script | ||||||
| Maturity | 05.10.2025 | 05.10.2030 | 05.10.2035 | 05.10.2025 | 05.10.2030 | 05.10.2035 |
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Call for Investment : Rajendra – 7719917444
Mail ID : rajendra@puneinvest.com
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Call for Investment : Rajendra – 7719917444
Mail ID : rajendra@puneinvest.com
Mumbai Pune, Satara, Kolhapur, Solapur , Ahmednagar Collection facility available
