This entry is part 5 of 9 in the series Tax Free Bond -2015-16

NTPC Tax Free Bond – Issue open  23 Sep 2015 & Close on 30 Sep 2015

NTPC  is coming out with a Tax Free, Secured, Redeemable non-convertible bond  for an amount of Rs. 400 Cr.with an option to retain of up to 300 Cr. for issuance  of additional bonds aggregating to a total of  up to Rs. 700 Cr  during fiscal 2016.    ISSUE FULLY SUBCRIBE

 

Product Note

Issue Highlight – 

IssuerNTPC Ltd
Type of InstrumentSecured, Redeemable, NCD having tax benefit u/s 10 (15) (iv) (h)
Issue Open23 Sep 2015
Issue Close30 Sep 2015 (with option of early closure or extension)
Issue Size700 Cr.
Face ValueRs. 1,000
Min. Application Size5 Bonds (Rs.5000) & multiply of 1 Bond thereafter (across all series bonds)
Interest Annually
Mode of AllotmentD'mat only
RatingAAA by CRISIL ICRA & CARE
ListingProposed on BSE & NSE
Interest on Application MoneyOn Allotment : same as coupon Rate On Refund : 5.00% P.A.
ReferanceProspect Page No 148 to 153

NTPC Issue Structure –

OptionOption 1Option 2Option 3
Tenor10 Yr15 Yr20 Yr
CouponRate
Category - I, II, IIISeries 1A7.11%Series 2A7.28%Series 3A7.37%
Category - IV (Retail)Series 1B7.36%Series 2B7.53%Series 3B7.62%

Cheque Details-

Retail Investor  :     ” NTPC Bonds 2015  Escrow Account “

NRIs (non-repatriation basis)  :  ” NTPC Bonds 2015 Escrow Account NRI ” 

About Issue

About the Issuer

NTPC is largest  power producer in India in term of both install capacity and generation, with aggregate install capacity of 44,398 MW as on March, 2015

Tax Benefit to Investor

Under the current Tax laws, the following possible Tax benefits, inter alia, will be available to the Bond Holder.

  • Interest from Bonds do not from part of  Total Income
  • Since the Interest Income on the Bonds is exempt, no tax deduction at source ( TDS ) is required. However interest on application money would be liable for TDS as well as would be subject to tax as per present Tax law.
  • Long Term Capital Gain – capital gain arising on the transfer of listed bonds shall be taxed @ 10% without Indexation or @20% with Indexation. (for Long Term Capital Gain -more than 12 months)
  • Short Term Capital Gains – on the transfer of listed bonds, where bonds held for a period of not more than 12  month would be taxed at the normal rates of tax in accordance with and subject to the provision of the Income Tax Act, 1961.

 

Subscription Data

BASIS OF ALLOTMENT

 

Cat 1Cat 2Cat 3Cat 4Total
APPLY QTY2,125,000 14,009,608 9,197,26017,882,44843,214,316
ALLOTMENT QTY700,0001,750,0001,750,0002,800,0007,000,000
% ALLOTMENT32.9412.4919.0315.6616.20
Cat 1Cat 2 Cat 3Cat 4Total
Issue Size (Cr.)
5 OctSubscribe (Cr )
No of times

Allotment/Listing

 

NTPC Allotment Details – 

Tax Free Bond 2015-16NTPC Ltd
Issue Open23 Sep 2015
Issue Close 30 Sep 2015 (early close 24 Sep)
Issue RegistrarKarvy Computershare
Listing ExchangeProposed BSE / NSE
Allotment Date5 Oct 2015
Listing Date08 Oct 2015
Interest Payment Date5 Oct each year till the date of maturity
Face Value1000
Circular Ref. NoNSE/CML/30905 BSE 20151007-2
Series 1ASeries 2ASeries 3ASeries 1BSeries 2BSeries 3B
Coupon7.11%7.28%7.37%7.36%7.53%7.62%
Period10 Years15 Years20 Years10 Years15 Years20 Years
ISIN NoINE 733E07JR2 INE 733E07JS0INE 733E07JT8INE 733E07JU6INE 733E07JV4INE 733E07JW2
BSE Script 961900961902961904961906961908961910
NSE Script
Maturity05.10.202505.10.203005.10.203505.10.202505.10.203005.10.2035

Call  for Investment : Rajendra  – 7719917444

Mail ID  : rajendra@puneinvest.com

Call  for Investment : Rajendra  – 7719917444

Mail ID  : rajendra@puneinvest.com

 Mumbai Pune, Satara, Kolhapur, Solapur , Ahmednagar Collection facility available