Indian Railway (IRFC) Tax Free Bond Issue -7.53% Dec 2015
Indian Railway (IRFC) Finance Company is coming out with a Tax Free, Secured, Redeemable bond issue face value 1000 each, aggregating up to Rs. 4532 Cr. Issue Open Date 8 Dec 2015 & close as on
21 Dec 2015 Early Close 10 Dec 2015. Issue Fully Subscribe First Day . [wptabs style=”smoothness” mode=”horizontal”]
|Issuer||IRFC Tax Free Bond|
|Type of Instrument||Secured, Redeemable, NCD|
|Issue Open||8 Dec 2015|
|Issue Close||21 Dec 2015|
|Issue Size||4532 Cr|
|Face Value||Rs. 1,000|
|Min. Application Size||5 Bonds (Rs.5000) & multiply of 1 Bond thereafter|
|Max Application Size (for Retail)||10 Lacs|
|Mode of Allotment||D'mat & Physical Form|
|Listing||BSE & NSE|
|Interest on Refund Money||5% p.a.|
|Frequency of Interest Payment||Annually|
Indian Railway Tax Free Bond Issue Structure –
|10 Years||15 Years||20 Years|
|For Category I,II, III|
|Coupon Rate %||7.07%||7.28%||7.25%|
|Category IV ( Retails)|
|Coupon Rate %||7.32%||7.53%||7.50%|
Retail Investor : ” IRFC Tax Free Bonds 2015 – Escrow Account -R”
Repatriation basis : ” IRFC Tax Free Bonds 2015 – Escrow Account -NR Repat”
Non Repatriation basis : ” IRFC Tax Free Bonds 2015 – Escrow Account -NR Non-Repat”
Bankers : [/wptabcontent][wptabtitle] About Issue[/wptabtitle] [wptabcontent]
About the Issuer
Indian Railway (IRFC) Finance Company is a dedicated financing arm of the Ministry of Railways. Its sole objective is to raise money from the market to part finance the plan outlay of Indian Railways. The money so made available is used for acquisition of rolling stock assets and for meeting other developmental needs of the Indian Railways.
The borrowing programme of IRFC is guided by the requirements projected by Ministry of Railways. The company has successfully met the targeted borrowings year after year, through issue of both taxable and tax-free Bonds, term loans from banks/financial institutions and through off shore borrowings. IRFC also makes use of innovative financial instruments to diversify the debt portfolio and to minimize the cost. Its contribution to infrastructure build-up in Railways is very significant. Till 31st March, 2013, Rolling Stock assets- Locomotives, Coaches and Wagons- valued at Rs. 97,482 cr. have been added to the asset base of the Indian Railways with funding assistance from IRFC. IRFC’s funding has support technology infusion in the Railways and has enabled Ministry of Railways to purchase new generation Locomotives from General Motors (USA) alongwith transfer of technology and new generation Coaches from Germany for use in high speed/Shatabdi trains.
IRFC’s share in funding of the most productive high capacity wagons and high horse power locomotives is very significant. Acquisition of high capacity & efficient assets with IRFC funding has gone a long way in increasing traffic output and revenue growth over the years. Around 50% of the revenue earning rolling stock assets operating on the Indian Railways network is funded by IRFC.
Since its inception, IRFC has consistently earned profits and paid dividend adding upto Rs. 1668 crore till 31-03-2012 on a paid up capital of Rs. 500 crore which has been increased to Rs. 800 crore from 2nd June, 2009 and further to Rs. 1,091 crore during 2009-10. The networth of the Company stood at Rs. 5,699.8 crore as on 30.09.2012. . Dividend payments for the year 2005-06, 2006-07, 2007-08, 2008-09, 2009-10,2010-11 and 2011-12 are Rs. 150 crore, Rs. 160 crore, Rs. 100 crore, Rs. 100 crore, Rs. 100 crore and Rs. 100 crore respectively and are the highest ever paid by a Railway PSU.The networth of IRFC as on 30-09-2012 stood at 5,699.8 crore
The Company’s performance has been rated excellent for eleven years in a row by the Department of Public Enterprises. Specially worth mentioning is the ranking of IRFC among the top ten Government Undertakings for the last four years in succession. For the years 2001-02, 2002-03 and 2003-04, Company has received Award from the President of India, Prime Minister of India and Vice President of India respectively. For the year 2005-06, 2006-07, 2007-08 and 2009-10. the Company has achieved the Perfect Score of 1.
Indian Railway Finance Company website link
Credit Ratings: Domestic: “CRISIL AAA/Stable” by CRISIL, “CARE AAA” rating by CARE and “[ICRA] AAA” rating by ICRA.
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.
[/wptabcontent] [wptabtitle] Subscription[/wptabtitle] [wptabcontent]
|Cat I||Cat II||Cat III||Cat IV||Total|
|8 Dec 15||Subscribe||3375.02||3023.96||2039.29||2358.03||10796.30|
|No of times||4.96||3.34||1.80||1.30||2.38|
|9 Dec 15||Subscribe||3375.02||3023.27||2038.79||2426.58||10863.66|
|No of times||4.96||3.34||1.80||1.30||2.40|
[/wptabcontent] [wptabtitle] Allotment[/wptabtitle] [wptabcontent]
India Railway Finance Company Allotment Details ISIN No, Interest payment date, Script ID, Code, Maturity Date
|Tax Free Bond||Indian Railway Finance Corporation - IRFC-Tranche 1|
|Issue Open||8 Dec 2015|
|Issue Close||10 Dec 2015 (Early Close)|
|Issue Registrar||Karvy Computershare Private Ltd|
|Allotment Date||21 Dec 2015|
|Listing Date||28 Dec 2015|
|Interest Payment Date||First Interest payment 15 Oct 2015 & subsequently on 15 Apr. of every year (Last interest payment along with the redemption amount)|
|Circular Ref. No||BSE -20151223-7|
|Tranche 1||Series 1A||Series 1B||Series 2A||Series 2B||Series 3A||Series 3B|
|For Cat. I, II , III||For Cat. IV||For Cat. I, II , III||For Cat. IV||For Cat. I, II , III||For Cat. IV|
|Period||10 Years||15 Years||20 Years||10 Years||15 Years||20 Years|
|ISIN No||INE053 F07793||INE053 F07801||INE053 F07819||INE053 F07827||INE053 F07835||INE053 F07843|
|Maturity||21 Dec 2025||21 Dec 2030||21 Dec 2035||21 Dec 2025||21 Dec 2030||21 Dec 2035|