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.
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Review By Dilip Davda on December 12, 2019
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
