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REC TAX FREE BONDS Tranche II Offer - Feb 2014 (Apply)

Rural Electrification Corporation Ltd Logo

Rural Electrification Corporation Ltd. (REC) is again coming out with a tax free bonds offer under Tranche II. The offer details are as under:

REC is offering each bond of Rs. 1000 face value bearing coupon rates ranging from 8.19% to 8.88% based on category and the tenure. The base size of this offer is Rs. 250 crore with an option to retain oversubscription up to Rs. 809.40 crore, taking the total offer size at Rs. 1059.40 crore. Minimum application is to be made for 5 bonds and in multiples of 1 bond thereof, thereafter. These bonds are available under demat and physical mode, but trading will take place in demat mode only.

These bonds are rated 'CRISIL AAA/Stable' by CRISIL, 'CARE AAA' by CARE, 'IND AAA' by IRRPL and '[ICRA] AAA' by ICRA indicating highest degree of safety regarding timely servicing of financial obligations and carry lowest credit risks. For category I,II and III (Non-Retail) the coupon rates are 8.19% for 10 yrs, 8.63% for 15 yrs and 8.61% for 20 yrs while for Retail category the coupon rates are 8.44% for 10 yrs, 8.88% for 15 yrs and 8.86% for 20 yrs. The issue opens for subscription on 28.02.14 and will close on or before 14.03.14.

This issue is lead managed by A.K. Capital Services Ltd, Axis Capital Ltd, Edelweiss Financial Services Limited and ICICI Securities Limited. Karvy Computershare Pvt Ltd is the registrar and SBICAP Trustee Co. Ltd. is Trustee for the bondholders. These bonds will be listed on BSE post allotment.


Conclusion / Investment Strategy

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Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Dec 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 before making any actual investment decisions, based on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the past, SME IPOs drew the attention of investors across the board. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at own risk. The above information is based on information available as on date coupled with market perceptions. The Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda

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.

Email: dilip_davda@rediffmail.com

The REC 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 REC NCD Feb 2014 worth investing. The REC NCD Feb 2014 Note sets the NCD expectations in systematic way which tells you if REC NCD Feb 2014 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in REC NCD Feb 2014 by providing NCD recommendations i.e. subscribe, avoid and neutral.