This entry is part 2 of 13 in the series Tax Bonds

IRFC Tax Free Bond – Issue open 21 Jan 13

Indian Railway Finance Corporation Ltd (IRFC) is launching a Tax Free Bond Issue to raise Rs. 8,886 Cr.  As per CBDT notification, IRFC authorised  to issue bonds up to Rs. 10,000 Cr during 2013 financial year.

IRFC already raised Rs. 1,114 Cr through Private Placement of Bonds.

IRFC public issue of tax free bonds is being extended till Friday, February 08, 2013.

Product Note

Issue Highlight –

IssuerIndian Railway Finance Corporation Ltd (IRFC)
Type of InstrumentSecured, Redeemable, NCD
Issue Open21 Jan 2013
Issue Close29 Jan 2013
Issue Size--------Cr. with right to retain oversubscription up to Rs. ------Cr. (Shelf Limit)
Face ValueRs. 1,000
Min. Application Size5 Bonds (Rs.5000) & multiply of 1 Bond thereafter
Interest Annually
Mode of AllotmentD'mat & Physical Form
RatingCRISIL AAA/Stable by CRISIL CARE AAA by CARE , ICRA AAA by ICRA
ListingNSE/BSE

Issue Structure –

OptionsSeries 1 Series 2
Tenor10 years15 years
Coupon Rate % (Interest)
Category - I, II, III7.18%7.34%
Category - IV (Retail)7.68%*7.84%*
Frequency of InterestAnnualAnnual
Redemption DateAt the end of 10 Yr. from Deemed date of allotmentAt the end of 15 Yr. from Deemed date of allotment

*Additional Interest of 0.50% p.a. shall only be available to the original Allottees under category IV. In the event of Sold/transfer , the Coupon rate shall stand revised to the coupon rate applicable for allottee falling under Category I, II , III.

Cheque Details-

Retail Investor  : ” IRFC Tax Free Bond 2012 – Escrow Account – R ”

NRI  Investor  :

Bankers :   Axis Bank, IDBI Bank, IndusInd Bank, Kotak Mahindra Bank, ICICI Bank,  PNB, SBI, Union Bank

Yes Bank, HDFC Bank

About Issue

About the Issuer

IRFC, the financial arm of Indian Railway.

The fund raise to this issue will be utilized by  the company towards financing the acquisition of rolling stock that will be leased to the ministry of railways. A apart of fund raised will also be utilized for funding projects approved by the ministry of railways and executed by Rail Vikas Nigam.

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.

Issue Drawback 

In case the Bonds held by the original Allottees under Category IV (Retail) are sold/transferred (except in case of transfer of Bonds to legal heirs in the event of death of original Allottee), the coupon rate shall stand revised to the coupon rate applicable for Allottees falling under Cat I,II,III portions

In simple word, additional 0.50% interest only for first investor, No benefit for Retail Investor buy from Open Market.

 

Subscription Data

Subscription details for IRFC Tax Free Bonds Day wise . First Day  Category I is fully subscribe.

CategoryNo of Bonds OfferNo. of Bonds SubscribeNo of time Subscribe
8 Feb 2013
Category I20,00,0002,54,01,75012.70
Category II20,00,0002,15,67,79010.78
Category III20,00,00022,65,1191.13
Category IV40,00,00045,74,7571.14
Total1,00,00,0005,38,09,4165.38
7 Feb 2013
Category I20,00,0001,23,50,2006.18
Category II20,00,0001,69,28,8008.46
Category III20,00,00020,72,5191.04
Category IV40,00,00040,37,4511.01
Total1,00,00,0003,53,88,9703.54
6 Feb 2013
Category I20,00,00096,00,2004.80
Category II20,00,0001,16,70,4505.84
Category III20,00,00018,16,0190.91
Category IV40,00,00037,25,1960.93
Total1,00,00,0002,68,11,8652.68
5 Feb 2013
Category I20,00,00096,00,2004.80
Category II20,00,0001,16,69,4505.83
Category III20,00,00017,82,2190.89
Category IV40,00,00035,31,3270.88
Total1,00,00,0002,65,83,1962.66
4 Feb 2013
Category I20,00,00094,00,2004.70
Category II20,00,0001,16,68,9505.83
Category III20,00,00017,63,2190.88
Category IV40,00,00033,85,3800.85
Total1,00,00,0002,62,17,7492.62
1 Feb 2013
Category I20,00,00084,00,2004.20
Category II20,00,0001,16,17,9505.81
Category III20,00,00016,75,2190.84
Category IV40,00,00032,22,8810.81
Total1,00,00,0002,49,16,2502.49
31 Jan 2013
Category I20,00,00084,00,2004.20
Category II20,00,0001,16,17,9505.81
Category III20,00,00016,71,2190.84
Category IV40,00,00030,87,1180.77
Total1,00,00,0002,47,76,4872.48
30 Jan 2013
Category I20,00,00083,00,2004.15
Category II20,00,0001,16,08,9505.80
Category III20,00,00016,57,9190.83
Category IV40,00,00029,77,5570.74
Total1,00,00,0002,45,44,6262.45
29 Jan 2013
Category I20,00,00082,00,2004.10
Category II20,00,0001,15,73,9505.79
Category III20,00,00016,24,6130.81
Category IV40,00,00028,29,9010.71
Total1,00,00,0002,42,28,6702.42
28 Jan 2013
Category I20,00,00076,00,2003.80
Category II20,00,00090,52,0504.53
Category III20,00,00014,51,9190.73
Category IV40,00,00023,63,6520.59
Total1,00,00,0002,04,67,8212.05
24 Jan 2013
Category I20,00,00048,50,1002.43
Category II20,00,00087,61,1504.38
Category III20,00,00010,92,7000.55
Category IV40,00,00016,44,6960.41
Total 1,00,00,0001,63,48,6461.63
23 Jan 2013
Category I20,00,00045,00,1002.25
Category II20,00,00034,28,7501.71
Category III20,00,00010,78,4000.54
Category IV40,00,0001,03,23,7431.03
22 Jan 2013
Category I20,00,00042,00,1002.10
Category II20,00,00033,23,7501.66
Category III20,00,00010,03,0000.50
Category IV40,00,00010,08,3170.25
Total1,00,00,00095,35,1670.95
21 Jan 2013
Category I20,00,00040,50,0002.03
Category II20,00,00032,23,2501.61
Category III20,00,0001,65,3000.08
Category IV40,00,0005,34,4750.13
Total1,00,00,00079,73,0750.80

Allotment/Listing

 

Listing Date :

Friday, February 22, 2013 in the list of “F GROUP”.

The Bond will listed on BSE & NSE  within 12 working days of the issue closing date.

 

Allotment Details  :

Tax Free BondIndian Railway Finance Corporation Ltd. (Tranche I)
Issue Open21 Jan 2013
Issue Close 8 Feb 2013
Issue RegistrarKarvy Computershare
Listing ExchangeBSE
BSE Script Code961755 (10 yrs) & 961756 (15 yrs)
BSE Script ID71IRFC2023 & 734IRFC2028
Coupon Rate7.18 (10 yrs) & 7.34 (15 yrs) Additional 0.50 Category IV
Allotment DateJan 22, 2013
Listing DateJan 25, 2013
ISIN NoINE053F07561 (10 Yr Bond)
INE053F07579 (15 Yr Bond)
Maturity Date19 Feb 2023 (10 yrs)
19 Feb 2028 (15 yrs)

Registrar of Issue :

Karvy Computershare Pvt Ltd

Trustee for Bondholders :

SBICAP Trusty Company Ltd

Depositories :

CDSL/ NSDL

Depositories :

NSDL & CDSL

Interest Payment Date :

15 Oct every year

Downloads

Document related to ongoing  Tax Free Bond Issue :

  1. IRFC Tax Free Bond FAQ’s (NRI)
  2. IRFC Tax Free Bond FAQ’s
  3. IRFC Tax Free Bond Document Required
  4. IRFC Tax Free Bond Banking Matrix
  5. IRFC Tax Free Bond Allotment Listing Details PDF

Note : Application must be bided before getting submitted with the collection bankers. Kindly ensure to be applications at your broker before banking.

 

Shortly Update Brokerage Structure about this product

Are you interested to know brokerage structure  in your Inbox  mail : rajendra@puneinvest.com

 

https://i0.wp.com/www.puneinvest.com/wp-content/uploads/IRFC-TAX-FREE.jpg?fit=259%2C213https://i0.wp.com/www.puneinvest.com/wp-content/uploads/IRFC-TAX-FREE.jpg?resize=150%2C150RajendraTax Free BondsIRFC Tax Free Bond - Issue open 21 Jan 13 Indian Railway Finance Corporation Ltd (IRFC) is launching a Tax Free Bond Issue to raise Rs. 8,886 Cr.  As per CBDT notification, IRFC authorised  to issue bonds up to Rs. 10,000 Cr during 2013 financial year. IRFC already raised Rs. 1,114...Investment you need