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) |
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| 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.
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Merits & Demerits of Tax free Bonds
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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: