Rural Electrification Corporation (REC) has launched its Tax Free Bonds issue of Rs.1000 Cr with right to retain over Subscription upto 4500 Cr.
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[wptabtitle] Product Note[/wptabtitle] [wptabcontent]
Issue Details
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Issue Opens |
Monday, December 03, 2012 | |
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Issue Closes |
Monday, December 10, 2012* | |
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Issuer |
Rural Electrification Corporation Limited | |
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Issue Size |
Public Issue of Rs. 1000 crores with right to retain over subscription up to the Shelf Limit (i.e. up to Rs 4,500 crores) |
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Minimum Application Size |
Face value of each Bond shall be Rs. 1,000/- and the minimum application size shall be for 5 bonds and in multiples of 1 Bond thereafter |
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Listing |
BSE and NSE | |
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Rating |
“CRISIL AAA/Stable” by CRISIL, “CARE AAA” by CARE, “IND AAA” by IRRPL “[ICRA]AAA” by ICRA |
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Coupon Rates for Category-I, II, III & IV Applicants (% p.a) |
7.22% |
7.38% |
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Additional Coupon Rates for Category-IV Applicants (% p.a.)** |
0.50% |
0.50% |
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Aggregate Coupon Rates for Category-IV Applicants (% p.a.)** |
7.72% |
7.88% |
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Interest payment date |
December 01, of every year. | |
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Tenor |
10 years |
15 years |
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Face Value per Bond |
Rs. 1,000/- |
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Frequency of Interest payment |
Annual |
Annual |
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Registrar |
Karvy Computershare Private Limited | |
| Mode of allotment |
In dematerialised form as well as in physical form, at the option of Applicants. |
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- Allotment First Come First Basis
- Cheque in favor of – “REC Tax Free Bond 2012-13 Escrow Account Tranche I ” and Cross Payee
Document Required for Physical Mode
- Self attested copy of Pan Card
- Self attested copy of Address Proof (Valid)
- Self attested copy cancelled Cheque of the bank account to which the amount pertaining to payment of refunds, Interest and Redemption , as applicable, should be credited.
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[wptabtitle] About Issue[/wptabtitle] [wptabcontent]
About the Issuer
- Notified as a Public Financial Institution under Section 4A of the Companies Act, 1956
- REC is one of only 16 Indian public sector undertakings to be granted “Navratna” status by the Department of Public Enterprise by virtue of its operational efficiency and financial strength.
- 66.80% shareholding in REC is held by Government of India acting through Ministry of Power. GoI has rated RECs performance as “Excellent” continuously since Fiscal 1994.
- Credit Ratings indicating highest safety:
- “CRISIL AAA/Stable” by CRISIL, “
- CARE AAA” by CARE,
- “INDAAA” by IRRPL and
- “[ICRA] AAA” by ICRA.
Issue Highlight
- 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.
Benefit to Investor
- Retail Investor Limit 10 lakhs
- No TDS on Interest
- Income by way of Interest on these bonds is fully exampted from Income Tax
- D’mat & Physical Mode
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[wptabtitle] Subscription Data[/wptabtitle] [wptabcontent]
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[wptabtitle] Allotment/Listing[/wptabtitle] [wptabcontent]
Allotment Listing Details REC Tax Free Bonds
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Registrar of Issue :
Karvy Computershare Pvt Ltd
Trustee for Bondholders :
Depositories :
NSDL & CDSL
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[wptabtitle] Downloads[/wptabtitle] [wptabcontent]
- REC Tax Free Bond – Product Note
- REC Tax Free Bond FAQ’s
- REC Tax Free Bond Document Required
- REC Tax Free Bond Application Form – Contact Us
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For REC Tax Free Bond Application Form – rajendra@puneinvest.com
or Investment In this Bond : Call Rajendra : 8007750904 or Mail : rajendra@puneinvest.com