Rural Electrification Corporation (REC) is coming out with the second tranche of tax free bond issuance of this fiscal to raise 300 Cr. with an over subscription option of 400 Cr aggregating upto Rs. 700 Cr. The issue Open for subscription on 27 Oct 2015 and close on 4 Nov 2015.
NRI Can Apply this Issue [wptabs style=”smoothness” mode=”horizontal”]
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[wptabtitle] Product Note[/wptabtitle] [wptabcontent]Issue Highlight – REC Tax Free Bond Tranche 2 [ws_table id=”730″]
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Issue Structure –
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Retail Option for Individuals if application is for 10 lacs or less
Cheque Details-
Retail Investor : ” REC Tax Free Bonds 2015- Escrow Account – R”
Non Re-patriaction Basis : ” REC Tax Free Bonds 2015- Escrow Account – NR Non-Repat”
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[wptabtitle] About Issue[/wptabtitle] [wptabcontent]
About the Issuer
REC (Rural Electrification Corporation) is a public financial institution in the power sector. The company is engaged in the financing and promotion of transmission, distribution and generation including renewable energy projects throughout India. It believes that its organization occupies a key position in the Govt. of India’s plans for the growth of the Indian Power sector. REC assists clients in formulating and implementing a broad array of power projects and finance those projects. The primary financial product of the company is project based long-term loans.
The company commenced operations in 1969 for the purpose of developing the power infrastructure in rural areas. It has contributed to the development of rural India through funding of transmission and distribution projects in rural areas.
REC has two wholly owned subsidiaries i.e. REC Transmission Projects Company Ltd and REC Power Distribution Company Ltd. It also has a 25% stake in a JV i.e. Energy Efficiency Services Ltd.
- Financial position is strong and the business is profitable.
- Uniquely positioned to access and appraise borrowers in the Indian power sector.
- Occupying a key strategic position in the GoI’s plans for growth of the power sector.
- Possessing an experienced management team with sector expertise.
- Pan India presence through zonal/project offices in most of state capitals.
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.
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[wptabtitle] Subscription Data[/wptabtitle] [wptabcontent]
Daily Subscription Figure for REC Tax Free Bond Tranche 2
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[wptabtitle] Allotment/Listing[/wptabtitle] [wptabcontent]
REC Tax Free Bond Tranche 2 – Allotment Details :
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Registrar of Issue : Karvy Computershare Pvt Ltd
Depositories : NSDL & CDSL
Debenture Trustee : SBI Cap Trustee Company Ltd
Are you interested to know brokerage structure mail : rajendra @puneinvest.com
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REC Tax Free Bond Application Form & Investment Call : Rajendra 7719917444