Friday, November 30, 2012

REC Tax Free Bonds-Issue Opening on 3 Dec 2012

Issue period: 3 December 2012 to 10 December 2012

Issue Highlights:

  • Issue of Tax Free Secured Redeemable Non Convertible Bonds
  • Issue Size: Rs 1,000 Crore with an option to retain oversubscription upto Rs 4,500 Crore
  • Additional Coupon Rate - Category-IV Applicants - 0.50% p.a.
  • REC is one of only 16 Indian PSUs granted "Navratna" status
  • 66.80% shareholding held by Govt. of India as on 31 Sep 2012
  • When Bonds held by the original allottees of Category IV are sold / transferred, coupon rate will be revised to the coupon rate for Category I, II & III investors. Refer to details.
  • Application cannot be made by Non-resident Indians and Foreign nationals.
Key Benefits:
  • The income from interest on these Bonds is fully exempt from Income Tax and no TDS is applicable.
  • Wealth Tax is not levied on investment in bonds under section 2(ea) of the Wealth-tax Act, 1957.
  • Credit Ratings indicating highest safety: AAA by CARE and ICRA, AAA/Stable by CRISIL.
  • The Bonds shall be listed and can be traded on BSE and NSE.
  • No upper limit on investment amount.
  • No lock in period for the Bonds.
Terms of the Issue:

ParticularsIssue Details
Face Value per BondRs 1,000
Tenor10 years15 years
Minimum ApplicationRs 5,000 (in multiples of Rs 1,000 thereafter)
Coupon Rate % p.a. (Category I, II and III)7.227.38
Additional Coupon Rate % p.a. (Category IV)0.500.50
Total Coupon Rate % p.a. (Category IV)7.727.88
Effective yield % p.a. (Category I, II and III)7.227.38
Effective yield % p.a. (Category IV)7.727.88
Frequency of Interest payment
(Paid on 1st December)
IssuancePhysical and Demat mode
Interest on application % p.a.As per coupon rate applicable to investor category
Interest on refund % p.a.5.00
Redemption Date10 years from Deemed Date of Allotment15 years from Deemed Date of Allotment
Redemption AmountRepayment of the face value with interest

Issue Structure:

Investor CategoryI - InstitutionalII - Non InstitutionalIII - HNI (more than 10 lacs)IV - Retail (upto and including 10 lacs)
Issue allocation15%15%40%40%
*Basis of allotment: on first come first serve basis

No comments:

Post a Comment

Thanks for Your Valuable comments. It will make Us to Serve You in Better Way. For Any STOCKS Query ,Please Call NiftyNext +91 880 2230 836.


The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness. The above recommendations are based on the theory of Technical Analysis and do not reflect the fundamental validity of the Scrip. does 't take any Responsibility for any losses arising from using the Stocks Recommendations.
We( WWW.NIFTYNEXT.COM) are not Registered with Any Regulatory Body in India ie SEBI,NSE,BSE,AMFI or Any Otheres.

Blog Archive