Rural Electrification Corporation (REC) is coming out with the first tax free bond issuance of this fiscal to raise 1000 Cr. with an over subscription option of 3850 Cr aggregated 4850 Cr. Investor in high Tax bracket effective yield comes to 12.44%.

Issue Closes on 17th September 2013 – 

Allotment Done – 26 Sep 2013 check your dmat a/c

Listing  Date – 30 Sep 2013

Product Note

Issue Highlight -Tranche 1
IssuerRural Electrification Corporation Ltd ( REC) Tranche-1
Type of InstrumentSecured, Redeemable, NCD
Issue Open30 Aug 2013
Issue Close23 Sep. 2013
Issue Size1,000 Cr. with an option to retain oversubscription of 3850 Cr. aggregating upto 4850 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 & Physical Form
RatingCARE AAA by CARE , AAA by CRISIL Rating
ListingNSE/BSE

Issue Structure –

OptionsSeries 1 Series 2Series 3
Tenor10 years15 years20 years
Coupon Rate %
Category - I, II, III8.01%8.46%8.37%
Category - IV (Retail)8.26%*8.71%*8.62%

Cheque Details-

Retail Investor  :

Bankers :   

About Issue

About the Issuer

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.

 

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Allotment/Listing

Listing Date :

Allotment Date :

REC Tax Free Bond Tranche I – Allotment Details :

Tax Free BondRural Electrification Corporation Ltd. (Tranche 1)-- REC
Issue Open30 Aug 2013
Issue Close
Issue RegistrarKarvy Computershare
Listing ExchangeBSE
BSE Script Code
BSE Script ID
Coupon Rate8.01 (10 yrs) & 8.46 (15 yrs) 8.37 (20 yrs) Additional 0.25 Category IV
Allotment Date
Listing Date
ISIN No
Maturity Date 2023 (10 yrs)
2028 (15 yrs)

Registrar of Issue :

Karvy Computershare Pvt Ltd

Depositories :

NSDL & CDSL

Are you interested to know brokerage structure,mail : rajendra @puneinvest.com

REC Tax Free Bond Application Form & Investment Call : Rajendra 7719917444

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