This entry is part 5 of 13 in the series Tax Bonds

 

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Power Finance Corporation Tax Free Bond – Tranche II  is launching a Tax Free Bond Issue to raise  up to Rs. 3,890.25 Cr.

Product Note

Issue Highlight –

IssuerPower Finance Corporation Ltd (PFC)
Type of InstrumentSecured
Issue Open18 Feb 2013
Issue Close15 Mar 2013
Issue SizeUpto Residual Shelf Limit ( i.e. 3,890.25 cr)
Face ValueRs. 1,000
Min. Application Size5 Bonds (Rs.5000) & multiply of 1 Bond thereafter
Interest Various Mode
Mode of AllotmentD'mat & Physical Form
RatingCRISIL AAA/Stable by CRISIL CARE AAA by CARE ,
ListingBSE

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 InterestThrough various mode available Through various mode available
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  : ” PFC Tax Free Bond 2012 – Escrow Account – R “

 

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

Yes Bank, HDFC Bank

About Issue

About the Issuer

PFC,

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 PFC Tax Free Bonds Day wise .

CategoryNo of Bond OfferNo of bond BidNo. of time subscribe
11 Mar 2013
Category I2,50,000000000
Category II1,50,0002,8000.02
Category III2,00,00026,0000.13
Category IV4,00,0007,31,5291.83
Total10,00,0007,60,3290.76
06 Mar 2013
Category I2,50,000000000
Category II1,50,0002,8000.02
Category III2,00,00028,0000.14
Category IV4,00,0005,50,5751.38
Total10,00,0005,81,3750.58
04 Mar 2013
Category I2,50,000000000
Category II1,50,0002,8000.02
Category III2,00,00023,0000.12
Category IV4,00,0005,22,8191.31
Total10,00,0005,48,6190.55
01 Mar 2013
Category I2,50,00060000
Category II1,50,0002,8000.02
Category III2,00,00012,0000.06
Category IV4,00,0004,24,7551.06
Total10,00,0004,39,6150.44
27 Feb 2013
Category I2,50,000000000
Category II1,50,0002,8000.02
Category III2,00,00012,0000.06
Category IV4,00,0003,67,7860.92
Total10,00,0003,82,5860.38
26 Feb 2013
Category I2,00,000000000
Category II1,50,0002,8000.02
Category III2,00,0005,0000.03
Category IV4,00,0003,40,5500.85
Total10,00,0003,48,3500.35
25 Feb 2013
Category I2,50,000000000
Category II1,50,0002,8000.02
Category III2,00,0005,0000.03
Category IV4,00,0002,91,2920.73
Total10,00,0002,99,0920.30
20 Feb 2013
Category I2,50,000000000
Category II1,50,0001,8000.01
Category III2,00,000000000
Category IV4,00,0001,37,8600.34
Total10,00,0001,39,6000.14

Allotment/Listing

 

Listing Date :

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

PFC Tax Free Bond Allotment Listing Details PDF

 

Registrar of Issue :

MCS Ltd

Trustee for Bondholders :

 

Depositories :

CDSL/ NSDL

 

Interest Payment Date :

 

Downloads

Document related to ongoing  Tax Free Bond Issue :

  1.  Tax Free Bond

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

Issue Brokerage structure

Shortly Update Brokerage Structure about this product

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