Power Finance Company (PFC) launched public Issue of Tax Free Bond Issue
Issue Early closer – 5 Oct 2013 Listing Date – 20 Nov 2013
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[wptabtitle] Product Note[/wptabtitle] [wptabcontent]Issue Highlight –Tranche 1
Issuer | Power Finance Corporation Ltd ( PFC) Tranche-1 |
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Type of Instrument | Secured, Redeemable, NCD having tax benefit u/s 10 (15) (iv) (h) |
Issue Open | 14 Oct., 2013 |
Issue Close | 11 Nov., 2013 (with option of early closure or extension) |
Issue Size | 750 Cr. with an option to retain oversubscription of 3875.90 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 as well as Physical Form |
Rating | CARE AAA by CARE ,CRISIL & ICRA |
Listing | BSE |
Interest on Application Money | On Allotment : same as coupon Rate On Refund : 5.00% P.A. |
Issue Structure –
Options | Tranche 1 Series 1 B | Tranche 1 Series 2 B | Tranche 1 Series 3 B |
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Tenor | 10 years | 15 years | 20 years |
Coupon Rate % | |||
Category - I, II, III - Series A | 8.18% | 8.54% | 8.67% |
Category - IV (Retail) Series B | 8.43% | 8.79% | 8.92% |
Cheque Details-
Retail Investor : ” PFC Tax Free Bonds 2013-Escrow Account – R “
NRI Investor
Repatriation basis : ” PFC TAX FREE BONDS 2013 – ESCROW ACCOUNT – NR REPAT“
Non Repatriation basis: “PFC TAX FREE BONDS 2013 – ESCROW ACCOUNT – NR NON – REPAT “
Note : Application will be rejected if banked without uploading in the electronic system of the recognized stock exchange. (Bidding process)
Bankers : Axis Bank, Kotak Bank , HDFC Bank, IDBI Bank, ICICI Bank, IndusInd Bank , SBI , Union Bank , PNB, Yes Bank [/wptabcontent]
[wptabtitle] About Issue[/wptabtitle] [wptabcontent]About the Issuer
- Conferred with Mini Ratna ( Category – I ) status in 1998 and notified as a Navratna company by the Govt. of India in 2007.
- Listed government company and public financial institution providing comprehensive range of financial products and related advisory services from project conceptualization to post-commissioning stage for clients in the power sector
- Registered with RBI as a non-deposit taking systemically important NBFC classified as an IFC in July 2010
- PFC is an integral part of, and continues to play a strategic role in, GoI’s initiatives for development of power sector in India.
Business Activities
- Comprehensive range of financial products to clients in power sector :
- Fund-based financial products including long-term project finance short-term loans, buyer’s line of credit and debt refinancing schemes.
- Non-fund based assistance including default payment guarantees and letters of comforts
- Fee-based technical advisory and consultancy services for power sector projects
Financial Performance
- Total loan assets increased from 1,60,366.60 Cr. As on Mar 31., 2013
- Total ncome 4419.60 Cr as on 31 Mar., 2013
- Profit after Tax 4419.60 Cr. As on 31 Mar., 2013
- Gross NPAs 1134.52 Cr. As on 31 Mar., 2013
- Net worth as of March 31, 2013 was 22,351.41 Cr. (0.71% of total loan assets)
- Capital adequacy ratio 17.98 % as on Mar 31 2013
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. ( Tax Free Bond Interest not part of Total Income)
- No deduction of TDS from the interest
- No upper limit on investment amount
- No lock in period for the Bonds
- The Bonds shall be listed and can be traded on BSE
- Capital Gain Benefit – capital gain arising on the transfer of listed bonds shall be taxed @ 10% without Indexation or @20% with Indexation.
Pre Tax Returns are very attractive
Options | Tax Free Bond Coupon | Tax Bracket 10.30 % | Tax Bracket 20.60% | Tax Bracket 30.90% |
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10 Years | 8.43 % | 9.40 % | 10.62 % | 12.20 % |
15 Years | 8.79 % | 9.80 % | 11.07 % | 12.72 % |
20 Years | 8.92 % | 9.94 % | 11.23 % | 12.91 % |
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[wptabtitle] How to Apply[/wptabtitle] [wptabcontent]
First read details about Issue & clear all doubts before apply Issue. If follow process 100% allotment chances. Major reason for rejection is non proper filling Form.
- Every Application Form is unique Application No. (Same Application No use by two Applicant
- Bidding Process : Application will be rejected if banked without uploading in the electronic system of the recognized stock exchange
- Allotment on First come First serve Basis , Are you interested to Invest then submit Form early as possible (Application money Interest paid by Issuer )
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[wptabtitle]Listing[/wptabtitle] [wptabcontent]
Tax Free Bond 2013-14 | PFC Ltd |
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Issue Open | |
Issue Close | |
Issue Registrar | Karvy Computershare |
Listing Exchange | BSE |
Allotment Date | 16 Nov 2013 |
Listing Date | 20 Nov, 2013 |
Interest Payment Date | 16 Nov Every Year |
Face Value | 1000 |
Circular Ref. No | BSE - 20131119-17 |
Series 1A | Series 2A | Series 3A | Series 1B | Series 2B | Series 3B | |
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Coupon | 8.18% | 8.54% | 8.67% | 8.43% | 8.79% | 8.92% |
Period | 10 Years | 15 Years | 20 Years | 10 Years | 15 Years | 20 Years |
ISIN No | INE 134E07414 | INE 134E07430 | INE 134E07455 | INE 134E07422 | INE 134E07448 | INE 134E07463 |
BSE Script | 961799 | 961800 | 961801 | 961802 | 961803 | 961804 |
Maturity | 16 Nov 2023 | 16 Nov 2028 | 16 Nov 2033 | 16 Nov 2023 | 16 Nov 2028 | 16 Nov 2033 |
Listing Date :
Allotment Date :
Registrar of Issue : Karvy Computershare Pvt Ltd
Allotment link After issue closed updated
Trustee for Bondholders : IL & FS Trustee Company Ltd
Depositories : NSDL & CDSL
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Application Form & Investment Call : Rajendra 800 775 0904
rajendra@puneinvest.com
Mobile 7719917444