REC Tax Free Bonds Public Issue to open on 03 Dec 2012
REC Ltd. is coming with Public Issue of Tax Free Secured Redeemable Non-Convertible Bonds of face
value of Rs. 1,000 each in the nature of Debentures having tax benefits. The Tranche Issue by the issuer is of Bonds
aggregating to Rs.1000 Cr with an option to retain oversubscription upto the shelf limit (of Rs.4500 crores)
Download REC Tax Free Bonds application forms
Investments upto 10 lakh in REC Tax Free Bonds are treated in retail investment category and investments above 10 lakhs in REC Tax Free bonds are treated in HNI Category
Bonds can be held either in physical form or in demat mode as per the option of the investor. But if some one wants to trade the bonds on nse/bse then it can be done only with bonds in demat mode.
*Allotment in REC TAX FREE BONDS is on first come first serve basis and bidding of the form is mandatory.
With reference to the SEBI Circular dated 27th July 2012 – All Debt issue applications must be bidded before getting submitted with the collecting bankers.
Issue details of REC Tax Free Bonds
| Issue Opens | Monday, December 03, 2012 |
| Issue Closes | Monday, December 10, 2012* |
| Mimnimum Application Size | Face value of each Bond shall be Rs.1,000/- and the minimum application size shall be for 5 bonds and in multiples of 1 Bond thereafter. No Upper Limits on investments |
| Listing | BSE and NSE |
| Rating | “CRISIL AAA/Stable” by CRISIL, “CARE AAA” by CARE, “IND AAA” by IRRPL“[ICRA]AAA” by ICRA |
| Coupon Rates for Category-I, II, III & IV Applicants (% p.a) |
7.22% |
7.38% |
| Additional Coupon Rates for Category-IV Applicants (% p.a.)** |
0.50% |
0.50% |
| Aggregate Coupon Rates for Category-IV Applicants (% p.a.)** |
7.72% |
7.88% |
| Interest payment date | December 01, of every year. | |
| Tenor |
10 years |
15 years |
| Face Value per Bond |
Rs. 1,000/- |
|
| Frequency of Interest payment |
Annual |
Annual |
| Registrar | Karvy Computershare Private Limited | |
| Tax Benefits | Interest income is tax free. Bonds listed on NSE & BSE are treated as long term capital asset if held for more than 12 months. | |
| Mode of allotment | In dematerialised form as well as in physical form, at the option of Applicants. | |