REC Tax Free Bond Tranche 2- Issue – 8.88% -Feb 2014

February 28, 2014

Rural Electrification Corporation (REC) is coming out with the second tranche of tax free bond issuance of this fiscal to raise 250 Cr. with an over subscription option of 809.40 Cr aggregating upto Rs. 1059.40 Cr.  The issue Open for subscription on  28 Feb 2014 and close  on 14 Mar 2014. Allotment Date 24 Mar & Listing Date 27 Mar 2014

NRI Can Apply this Issue [wptabs style=”smoothness” mode=”horizontal”]

[wptabs style=”wpui-blue” mode=”horizontal” background=”false”]

[wptabtitle] Product Note[/wptabtitle] [wptabcontent]Issue Highlight – REC Tax Free Bond Tranche 2 

IssuerREC Tax Free Bond
Type of InstrumentSecured, Redeemable, NCD
Issue Open28 Feb 2014
Issue Close14 Mar 2014 ***
Issue Size1000 Cr
Face ValueRs. 1,000
Min. Application Size5 Bonds (Rs.5000) & multiply of 1 Bond thereafter
Mode of AllotmentD'mat & Physical Form
ListingBSE & NSE

Issue Structure –

10 Years15 Years20 Years
For Category I,II, III
Coupon Rate %8.19%8.63%8.61%
Category IV ( Retails)
Coupon Rate %8.44%8.88%8.86%

Cheque Details-

Retail Investor  :  ” REC Tax Free Bonds 2013 – Escrow Account – R”

Repatriation Basis :  “REC Tax Free Bonds 2013 – Escrow Account – NR Repat”

Non Re-patriaction Basis  :  ” REC Tax Free Bonds 2013 – Escrow Account – NR Non-Repat”


[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.



[wptabtitle] Subscription Data[/wptabtitle] [wptabcontent]

Daily  Subscription Figure for REC Tax Free Bond Tranche 2

Cat ICat IICat IIICat IVTotal
Cat ICat IICat IIICat IVTotal
Issue Size105.94264.84264.84423.761059.38
14 MarSubscribe45.00240.01284.26527.441096.71
No of times0.420.911.071.241.04
13 MarSubscribe45.00234.70261.61494.711036.01
No of times0.420.890.991.170.98
12 MarSubscribe45.00203.34129.80467.51845.66
No of times0.420.770.491.100.80
11 MarSubscribe45191.22118.21440.61795.04
No of times0.420.720.451.040.75
10 MarSubscribe4598.62116.88400.57661.08
No of times0.420.370.440.950.62
7 MarSubscribe45.0071.91103.45339.43559.80
No of times0.430.270.390.800.53
6 MarSubscribe45.0070.5698.80306.02520.38
No of times0.420.270.370.720.49
5 MarSubscribe20.0058.1884.60263.54426.32
No of times0.200.220.320.620.40
4 MarSubscribe45.0054.3069.33221.09389.72
No of times0.420.210.260.520.37
3 MarSubscribe20.0028.3435.47173.10256.91
No of Times0.
28 FebSubscribe20.0024.7219.4090.46154.58
No of times0.


[wptabtitle] Allotment/Listing[/wptabtitle] [wptabcontent]

REC Tax Free Bond Tranche 2 – Allotment Details :

Tax Free BondRural Electrification Corporation
Issue Open28 Feb 2014
Issue Close14 Mar 2014
Issue RegistrarKarvy
Listing ExchangeBSE
Allotment Date24 Mar 2014
Listing Date27 Mar 2014
Interest Payment Date1 Dec Every Year
Face Value1000
Circular Ref. NoBSE -20140326-29
Series1 A2 A3 A1 B2 B3 B
Period10 yr15 yr20 yr10 yr15 yr20 yr
ISIN NoINE 020B07IC4INE 020B07ID2INE 020B07IE0INE 020B07IF7INE 020B07IG5INE 020B07IH3
BSE Script961867961868961869961870961871961872
Script ID819REC24863REC29861REC34844REC24888REC29886REC34
Maturity Amt100010001000100010001000

Registrar of Issue :

Karvy Computershare Pvt Ltd

Depositories :




Are you interested to know brokerage structure    mail : rajendra



REC Tax Free Bond Application Form & Investment Call : Rajendra 7719917444

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