With all asset class being volatile, investors are scouting for save heaven.With inflation being at 9 % beating it with guaranteed income and safe capital it is next to impossible in the current context.
However, with lot of reforms are being in place and with good monsoon near future say in a year's time inflation may get moderated.In such a situation an investment which delivers tax- free return of 8 per cent will be a better deal.
IPO REC Bond.
Rural Electrification Corporation Ltd are coming up with their Public issue of Tax -free, Secured, Redeemable, Non Convertible debenture from Aug 30, 2012. The issue size is Rs. 3,500 Crore and allotment shall be on first cum first serve basis across all categories.
ISSUE SNAPSHOT..
| Issuer | Rural Electrification Corporation Limited | | ||
| Credit Rating | CRISIL AAA/Stable, CARE AAA, IND AAA, [ICRA] AAA | | ||
| Issue Size | Upto Rs. 3,500 crore | | ||
| Instrument | Tax Free, Secured, Redeemable, Non-Convertible Bonds in the nature of Debentures having tax benefits u/s 10 (15) (iv) (h) of Income Tax Act, 1961 | | ||
| Issue Opening & Closing | Opens on 30-Aug-2013 & Closes on 23-Sep-2013 | | ||
| Tenure | 10 Year | 15 year | 20 year | |
| Coupon for Category (I, II & III) | 8.01 % | 8.46 % | 8.37 % | |
| Coupon for Category (IV) | 8.26 % | 8.71 % | 8.62 % | |
| Issuance Form | Both in dematerialized form as well as in physical form, at the option of Applicants. However, in case of QFIs, the issuance shall be in dematerialized form. | | ||
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| Face value | Rs.1000 | | ||
| Min Investment Amount | Rs. 5,000 in multiples of one bond thereafter | | ||
| Frequency of Interest Payout | Annually | | ||
| Listing | BSE | | ||
| Security | The Bonds issued by the Company will be secured by way of first / pari passu charge on the book debts of the Company, other than those that are exclusively charged/earmarked to any trustee/lender(s) of the Company, and/or any other security as may be agre | | ||
Specification About Categories of Investor:
| Categories | Who can Apply | Allocation |
| Category I | Institutions (Refer the product note) | Upto 20% of the overall Issue (700 crore) |
| Category II | Corporates (Refer the product note) | Upto 20% of the overall Issue (700 crore) |
| Category III | The following Investors applying for an amount aggregating to above Rs. 10 lakhs across all Series of Bonds in this Tranche – I Issue: • Resident Indian individuals; • Hindu Undivided Families through the Karta; • Non Resident Indians on repatriation as well as non-repatriation basis; and • QFIs being an individual. | Upto 20% of the overall Issue (700 crore) |
| Category IV | The following Investors applying for an amount aggregating upto and including Rs.10 lakhs across all Series of Bonds in this Tranche – I Issue: • Resident Indian individuals; • Hindu Undivided Families through the Karta; • Non Resident Indians on repatriation as well as non-repatriation basis; and • QFIs being an individual. | Upto 40% of the overall Issue (1400 crore) |
To apply paste the link in new tab to download the form.
Information Given by
Mr. Suresh Parthasarathy,
CEO and Chief Financial Planner,
SPP Wealth and Financial Planners P Ltd,
Mobile 98404 54737
Land Line 044-42046359.
suresh@myassetsconsolidation.com
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