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IREDA Tax Free Bonds – Feb 2014 – Details

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ireda

Indian Renewable Energy Development Agency (IREDA)  is targeting to raise up to Rs 500 crore with an option to retain over-subscription up to Rs.1000 crore.  It has AAA credit Rating.

The issue is open from 17-Feb-2014  to 10-Mar-2014 . However, it may close early, depending on response.

 

IREDA  Tax Free Bonds 
Details Series I Series II Series II
Tenor 10 Years 15 years 20 years
Interest Paid Annual Annual  
Coupon Rate 8.41% 8.80% 8.80%
Effective Pre-Tax Yield
(30% tax slab)
12.17% 12.74% 12.74%
Effective Pre-Tax Yield
(20% tax slab)
10.59% 11.08% 11.08%
Effective Pre-Tax Yield
(10% tax slab)
9.38% 9.81% 9.81%
Minimum Application Rs 5000
Maximum Application Rs 10 lacs ( Retail)
Issue Opens on 17-Feb-14
Issue Closes on 10-Mar-2014 (May close early)

About the Company

IREDA is a Government of India undertaking & a non-banking financial company registered with RBI. It is engaged in extending financing to projects and schemes for generating electricity and energy through renewable sources and conserving energy through energy efficiency.

For the year ended FY-13 revenue from operations, primarily consisting of interest income from lending was Rs 719 crore as against Rs 520 crore in the previous years. Net profits after tax was Rs 202 crore in FY-13 compared with Rs 173 crore in the previous year. IREDA’s net NPAs have come down to 0.92% for FY-13 as against 2.5% for FY-12.

Other Important Points

  • Investors can choose to apply in demat as well as physical form. Demat account is not mandatory. However, if you want to sell/trade these bonds before maturity, it is mandatory to have a demat account. You can subscribe to them in physical form as well and keep them till maturity.
  • Interest will get credited to your linked bank account through ECS.  The interest payment date is not yet fixed but the first due interest will be paid after 1 year from the deemed date of allotment.
  • NRI Investment: Non-Resident Indians (NRIs) and Qualified Foreign Investors (QFIs) are NOT eligible to invest in this issue.
  • The allotment will be made on a “first-come-first-served” basis. Allotment will be done within 12 working days from the closing date of the issue.
  • Bonds will be listed on NSE & BSE

Download the Form

You can download the Form from IREDA Website.

Taxation Aspects of Tax FREE Bonds

Read my Post –  Taxation Aspects of Tax free Bonds?

Merits & Demerits of Tax free Bonds

Read –  Tax free Bonds – Should you invest in these?

Allotment Status of IREDA Tax free Bonds

Youc an check the Allotment status of your IREDA Tax free Bonds application at link below by entering application number / PAN number:

http://mis.karvycomputershare.com/ipo/

If you have any queries related to this article or any other personal finance query ( Investment, Taxation etc), please comment below

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About wealth18

The author is a Chartered Accountant and loves to write about Personal Finance, Wealth Management, Taxation etc. Disclaimer - The articles on this website is for informational and knowledge purposes and should not be treated as financial advice, Please consult your financial advisor before taking any investment decision.

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