IREDA  Tax Free Bond – Issue open 17 Feb 2014  Indian Renewable Energy Development Agency Ltd (IREDA) is coming out with a Tax Free, Secured, Redeemable bond issue face value 1000 each, aggregating  to 1000 Cr. Coupon rate is very attractive 8.80% , Issue size is very small so Issue may be first day . Issue Close 4 Mar, allotment 13 mar, listing 19 Mar 2014 

Product Note

IREDA Tax Free Bond Issue Highlight – 

IssuerIREDA Tax Free Bond
Type of InstrumentSecured, Redeemable, NCD
Issue Open17 Feb 2014
Issue Close10 Mar 2014 ***
Issue Size1000 Cr
Face ValueRs. 1,000
Min. Application Size5 Bonds (Rs.5000) & multiply of 1 Bond thereafter
Interest Annual
Mode of AllotmentD'mat & Physical Form
RatingAAA by CRISIL CARE BWR
ListingBSE & NSE
*** option for early closer (If Issue Subscribe fully then Issue close one day notice)

Limit for Retail Investor is 10 lakhs (Cat IV)

Allotment First come First Serve Basis

IREDA Tax Free Bond Interest Rate Chart

10 Years15 Years20 Years
For Category I,II, III
Coupon Rate %8.16%8.55%8.55%
Category IV ( Retails)
Coupon Rate %8.41%8.80%8.80%

NRI not allow to invest in this Issue

Cheque Details

Retail Investor :  Escrow Account – IREDA Public Issue

  Note :   Application will be rejected if banked without uploading in the electronic system of the recognized stock exchange. (Bidding process)

About Issue

About the Issuer -IREDA

IREDA, a non-banking financial institution registerd with RBI under the RBI Act, 1934 engaged in extending financing services to projects and schems for generating electricity and energy through renewable sources and coserving energy through enery efficiency.

IREDA provides financial assistance to the following renewable and energy efficiency projects:

  • Wind Power
  • Hydro Power
  • Biomass Power Co-generation
  • Energy Efficiency & Conservation
  • Soar Energy
  • Waste to Energy & Miscellaneous

The GoI has been regulary providing finacial support in the form of equity infusion and has also guaranteed loans raised from international agencies. In the Union Budget 2013-14, the Government of India announced allocation of funds from the National Clean Energy Fund to Company for the period of five years, for on-lending to viable renewable energy projects by way of refinancing part of the loan at concessional rate of interest.

Under the categorisation of Public Sector Enterprises, Company was upgraded from ‘Schedule C’ to ‘Schedule B‘ by the Department of Public Enterprises, Ministry of Heavy Industries and Public Enterprises, Government of India with effect from Jan., 4 2010.

 Benefit to Investor

The Income by way of Interst on these Bonds is fully exempt from Income Tax as per provision under section 10(15)(iv)(h) of Income Tax  Act.

No TDS  (Interst from Bond do not form part of Total Income)

Capital Gain Benefit – Capital gain arising on the transfer of listed bonds shall be taxed @ 10% without Indexation or @ 20% with Indexation.

Short Term Capital Gain  on the transfer of listed bonds, where bonds are held for a period of not more than 12 months would be taxed at normal rates of tax in accordence with and subject to the Provision of the I.T. Act.

  

Subscription Data

IREDATax Free Bond Subscription Data .

Cat ICat IICat IIICat IVTotal
Issue Size1002003004001000
4 MarSubscribe10.10107.80121.55496.60736.05
No of times0.100.540.411.240.74
Unsubscribe89.9092.20178.45-96.60263.95
3 MarSubscribe10.10107.45120.21490.84728.61
No of Times0.100.540.401.230.73
Unsubscribe89.9092.55179.79-90.84271.39
28 FebSubscribe10.10107.42119.16486.07722.75
No of times0.100.540.401.220.72
Unsubscribe89.9092.58180.84-86.07277.25
26 FebSubscribe10.10103.79117.16478.83709.88
No of times0.100.520.391.200.71
Unsubscribe89.9096.21182.84-78.83290.12
25 FebSubscribe10.10101.50115.30471.23698.13
No of times0.100.510.381.180.70
Unsubscribe89.9098.50184.70-71.23301.87
24 FebSubscribe10.1099.33107.37462.63679.44
No of times0.100.500.361.160.68
Unsubscribe89.90100.67192.63-62.63320.56
21 FebSubscribe1073.1898.27447.02628.48
No of times0.100.370.331.120.63
Unsubscribe90126.82201.73-47.02371.52
20 FebSubscribe1068.2393.12431.16602.51
No of times0.100.340.311.080.60
Unsubscribe90131.77206.88-31.16397.49
19 FebSubscribe1064.5789.47406.61570.66
No of times0.100.320.301.020.57
Unsubscribe90135.43210.53-429.34
18 FebSubscrube1059.1586.13370.98526.26
No of times0.100.300.290.930.53
No of times90.00140.85213.8729.02473.74
17 FebSubscribe1050.0063.40285.51408.91
No of times0.100.250.210.710.41
Unsubscribe90150236.60114.49591.09

Allotment/Listing

Tax Free BondIREDA
Issue Open17 Feb 2014
Issue Close 4 Mar 2014
Issue RegistrarLink Intime
Listing ExchangeBSE
Allotment Date13 Mar 2014
Listing Date19 Mar 2014
Interest Payment Date13th March Every Year
Face Value1000
Circular Ref. NoBSE -20140318-21
Series
Coupon8.16%8.55%8.55%8.41%8.80%8.80%
Period10 yr15 yr20 yr10 yr15 yr20 yr
ISIN NoINE 202E07104INE 202E07120INE 202E07146INE 202E07112 INE 202E07138INE 202E07153
BSE Script 961831961832961833961834961835961836
Script ID816IREDA24855IREDA29855IREDA34841IREDA24880IRED A29 880IREDA34
Maturity13 Mar 202413 Mar 202913 Mar 203413 Mar 202413 Mar 202913 Mar 2034
Maturity Amt100010001000100010001000

Source:  Issue Prospectus 

Disclaimer: “Invest only on the basis of prospectus”

 

RajendraBondsTax Free BondsIREDA  Tax Free Bond - Issue open 17 Feb 2014  Indian Renewable Energy Development Agency Ltd (IREDA) is coming out with a Tax Free, Secured, Redeemable bond issue face value 1000 each, aggregating  to 1000 Cr. Coupon rate is very attractive 8.80% , Issue size is very small so...Investment you need