REC launched Tax Free Bond Issue Tranche II

 

 

 

 

 

Product Note

Issue Highlight -Tranche II 
IssuerRural Electrification Corporation Ltd ( REC) Tranche II
Type of InstrumentSecured, Redeemable, NCD
Issue Open25, Feb, 2013
Issue Close15 Mar 2013
Issue Size
Face ValueRs. 1,000
Min. Application Size5 Bonds (Rs.5000) & multiply of 1 Bond thereafter
Interest Annually
Mode of AllotmentD'mat & Physical Form
RatingCARE AAA+ by CARE , AAA by CRISIL Rating
ListingNSE/BSE

Issue Structure –

OptionsSeries 1 Series 2
Tenor10 years15 years
Coupon Rate %
Category - I, II, III6.88%7.04%
Category - IV (Retail)7.38%*7.54%*

*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  :

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.

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

CategoryNo of Bond IssueNo of Bond SubscribeNo of time Subscribe
11 Mar 2013
Category I2,50,00020000
Category II1,50,0008000.01
Category III2,00,00027,7000.14
Category IV4,00,0003,92,7120.98
Total10,00,0004,21,2320.42
08 Mar 2013
Category I2,50,00020000
Category II1,50,0008000.01
Category III2,00,00027,7000.14
Category IV4,00,0003,34,6920.84
Total10,00,0003,63,2120.36
06 Mar 2013
Category I2,50,00020000
Category II1,50,000000000
Category III2,00,00018,0000.09
Category IV4,00,0002,17,3850.54
Total10,00,0002,35,4050.24
04 Mar 2013
Category I2,50,000200
Category II1,50,000000000
Category III2,00,0008,0000.04
Category IV4,00,0001,92,8970.48
Total10,00,0002,00,9170.20
1 Mar 2013
Category I2,50,00020000
Category II1,50,000000000
Category III2,00,0003,0000.02
Category IV4,00,0001,34,0440.34
Total10,00,0001,37,0640.14
27 Feb 2013
Category I2,50,00020000
Category II1,50,000000000
Category III2,00,000000000
Category IV4,00,00098,8440.25
Total10,00,00098,8640.10
26 Feb 2013
Category I2,50,000000000
Category II1,50,000000000
Category III2,00,000000000
Category IV4,00,00075,9250.19
Total10,00,00075,9250.08
25 Feb 2013
Category I2,50,000000000
Category II1,50,000000000
Category III2,00,000000000
Category IV4,00,00026,1250.07
Total10,00,00026,1250.03

Allotment/Listing

Listing Date :  April 2, 2013 

Allotment Date : Mar  25, 2013 

REC Tax Free Bond Tranche II – Allotment Details :

Tax Free BondRural Electrification Corporation Ltd. (Tranche II)-- REC
Issue Open25 Feb 2013
Issue Close 15 Mar 2013
Issue RegistrarKarvy Computershare
Listing ExchangeBSE
BSE Script Code961759 (10 yrs) & 961760 (15 yrs)
BSE Script ID688REC2023 & 704REC2028
Coupon Rate6.88 (10 yrs) & 7.04 (15 yrs) Additional 0.50 Category IV
Allotment DateMar 25, 2013
Listing DateApr 2, 2013
ISIN NoINE020B07GY2 (10 Yr Bond)
INE020B07GZ9 (15 Yr Bond)
Maturity Date25 Mar 2023 (10 yrs)
25 Mar 2028 (15 yrs)
Allotment Details PDF Download

Registrar of Issue :

Karvy Computershare Pvt Ltd

Allotment link

 

Trustee for Bondholders :

 

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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