This entry is part 7 of 13 in the series Tax Bonds

d7IRFC Tax Free Bond – Issue open 25 Feb 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.

 

Product Note

Issue Highlight –

IssuerIndian Railway Finance Corporation Ltd (IRFC) Tranche II
Type of InstrumentSecured, Redeemable, NCD
Issue Open25 Feb 2013
Issue Close13 Mar 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 Oct 15 Every year
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, III6.88%7.04%
Category - IV (Retail)7.38%*7.54%*
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 2013 – Escrow Account – R ”

 

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 Bond OfferNo of Bond SubscribeNo of time Subscribe
11 Mar 2013
Category I20,00,00021,50,0701.08
Category II20,00,00020,8000.01
Category III20,00,00032,0000.02
Category IV40,00,0004,38,3860.11
Total1,00,00,00026,41,2560.26
08 Mar 2013
Category I20,00,00021,50,000
Category II20,00,00020,800
Category III20,00,00022,0000.01
Category IV40,00,0003,49,3240.08
Total1,00,00,00025,42,1440.25
06 Mar 2013
Category I20,00,00021,50,0201.08
Category II20,00,000000000
Category III20,00,00020,0000.04
Catgory IV20,00,0002,31,7210.06
Total1,00,00,00024,01,7410.24
04 Mar 2013
Category I20,00,00021,50,0201.08
Category II20,00,000000000
CATEGORY III20,00,00010,0000.01
CATEGORY IV40,00,0001,88,9200.05
TOTAL1,00,00,00023,48,9400.23
1 Mar 2013
Category I20,00,00021,50,0201.08
Category II20,00,000000000
Category III20,00,000000000
Category IV40,00,0001,22,6280.03
Total1,00,00,00022,72,6480.23
27 Feb 2013
Category I20,00,00020000
Category II20,00,000000000
Category III20,00,000000000
Category IV40,00,00082,8780.02
Total1,00,00,00082,8980.01
26 Feb 2013
Category I20,00,000000000
Category II20,00,000000000
Category III20,00,000000000
Category IV40,00,00057,2230.01
Total1,00,00,00057,2230.01
25 Feb 2013
Category I20,00,0000000000
Category II20,00,000000000
Category III20,00,000000000
Category IV40,00,00016,625000
Total1,00,00,00016,6250.00

Allotment/Listing

 

Listing Date : April 1 , 2013

Allotment Date : Mar 23, 2013

Allotment Details :

Tax Free BondIndian Railway Finance Corporation Ltd. (Tranche II)
Issue Open25 Feb 2013
Issue Close 15 Mar 2013
Issue RegistrarKarvy Computershare
Listing ExchangeBSE
BSE Script Code961757 (10 yrs) & 961758 (15 yrs)
BSE Script ID688IRFC2023 & 704IRFC2028
Coupon Rate6.88 (10 yrs) & 7.04 (15 yrs) Additional 0.50 Category IV
Allotment DateMar 23, 2013
Listing DateApr 1, 2013
ISIN NoINE053F07587 (10 Yr Bond)
INE053F07595 (15 Yr Bond)
Maturity Date23 Mar 2023 (10 yrs)
23 Mar 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 PDF

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

 

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