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IREDA TAX Free Bonds Issue Offer - Feb 2014 (Apply)

IREDA Ltd Logo

IREDA is a Public Limited Government Company established in 1987, under the administrative control of Ministry of New and Renewable Energy (MNRE) to promote, develop and extend financial assistance for renewable energy and energy efficiency /conservation projects with the motto: 'ENERGY FOR EVER'

To give financial support to specific projects and schemes for generating electricity and / or energy through new and renewable sources and conserving energy through energy efficiency, IREDA mulls increase in its share by way of innovative financing with customer satisfactions, maintain lead position and improve efficient services to customers with continued upgrade of process, system and resource.

Now the company is planning to generate Rs. 1000 crore by way of Tax Free Bonds issue that opens on 17.02.14 and will close on or before 10.03.14. The base size is Rs. 500 crore with a green shoe option to retain oversubscription up to Rs. 500 crore. Minimum application is to be made for 5 bonds and in multiples of 1 bond thereon, thereafter. Retail investors can invest up to Rs 10 lakh. CARE has rated these bonds as 'CARE AAA (SO)' and Brickwork Rating has rated as 'BWR AAA' indicating highest degree of safety regarding timely servicing of financial obligations.

Coupon rates offered by the company for Non-Retail (Category I, II and III) are at 8.16% for 10 yrs and 8.55% for 15 and 20 yrs, and for Retail (Category IV) it is at 8.41% for 10 yrs and 8.80% for 15 and 20 yrs. These bonds will be listed on BSE and NSE post allotment. Although the allotment is available in demat and physical mode, trading will take place only in demat form.

The issue is lead managed by Karvy Investor Services Ltd, A K Capital Services Ltd and RR Investors Capital Services Pvt. Ltd., Link Intime India Pvt. Ltd. is the registrar to the offer and SBI Cap Trustee Ltd is the Trustee to the Debentures.

This issue is expected to receive good response due to its rating and coupon rate and set to repeat the re-run of recent most successive Tax Free Bonds offer of PFC, NTPC, NHAI, NHPC etc.

Conclusion / Investment Strategy

Remarks: Apply

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on December 12, 2019

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).

About Dilip Davda

Dilip Davda, a freelance journalist

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.


The IREDA NCD Feb 2014 Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered NCD Analysts tells you if IREDA NCD Feb 2014 worth investing. The IREDA NCD Feb 2014 Note sets the NCD expectations in systematic way which tells you if IREDA NCD Feb 2014 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in IREDA NCD Feb 2014 by providing NCD recommendations i.e. subscribe, avoid and neutral.