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PFC Tax Free Bonds – Oct 2013 – Details

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Power Finance Corporation (PFC) has been allotted Rs 5000 crore for raising funds through tax free bonds.

Some of it has already been raised through private placement and approx. Rs 3875 crore is being raised through this issue. From it 40% is reserved for retail investors.

The tax free bonds issue would open from 14-Oct-2013 and close on 17-Nov-2013

The issue size is Rs 750 crore with an option to retain oversubscription up to Rs 3876 crore

Power Finance Corporation
Tax Free Bonds Oct 2013 (Tranche 1)
Details Series 1B Series 2B Series 3B
Tenor 10 Years 15 years 20 years
Interest Paid Annual Annual Annual
Coupon Rate 8.43% 8.79% 8.92%
Effective Pre-Tax Yield
(30% tax slab)
12.20% 12.72% 12.91%
Effective Pre-Tax Yield
(20% tax slab)
10.62% 11.07% 11.23%
Effective Pre-Tax Yield
(10% tax slab)
9.40% 9.80% 9.94%
Minimum Application Rs 5000
Maximum Application Rs 10 lacs ( Retail)
Issue Opens on 14-Oct-13
Issue Closes on 17-Nov-13

About the Company

During 2012-2013,

  • Total Consolidated Revenue –  Rs 17314 crore
  • Net profit was Rs 5993 crore
  • Net worth Rs. 22351 crore

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.
  • 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
  • NRI Investment: Non-US NRIs can also invest in this issue. They can apply for these bonds both on repatriation basis as well as non-repatriation basis.

 Download the Form

You can download the Form from NHB 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 NHB Tax free Bonds

Youc an check the Allotment status of your NHB 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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