Hi All,
Yet another issue of Tax Free Bond. The terms are more or less similar to NHAI - National Highway Bonds.
Main difference is minimum application amount is Rs.10000/- & multiple of Rs.5000/- & Annual interest is payable on October 15 each year and will be listed at BSE only and issue is opening on 30th Dec. 2011.
Needless to say allotment is on 1st come 1st serve Basis. Interest Rate is same as NHAI.
You can download application eforms through the following link and deposit with the bankers to the issue directly as given in the form. Just scroll down select issue TAB and select PFC. Please ensure you download form by clicking on Radio Button with code option to get our code 991044 printed on the form. So that we can earn something on same, otherwise only our main broker will be benefitted.
Details of Power Finance Ltd Tax Free Bond.
Issue Structure
Issue Opening Date
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Friday, December 30, 2011
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Issue Closing Date
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Monday, January 16, 2012
The subscription list for the Issue shall remain open for subscription at the commencement of banking hours and close at the close of banking hours, with an option for early closure (subject to the Issue being open for a minimum of 3 days) or extension by such period, upto a period of 30 days from the date of opening of the Issue, as may be decided by the Board of Directors/ Committee of the Company. In the event of such early closure of the subscription list of the Issue, our company shall ensure that public notice of such early closure is published on or before the day of such early date of closure through advertisement/s in a leading national daily newspaper. Further, Allotment shall be on first come first serve basis, with Issuer Company having the discretion to close the Issue early irrespective of whether any of the Portion(s) are fully subscribed.
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Issue of Bonds
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Public Issue by Power Finance Corporation Limited (“Company” or “Issuer”) of tax free bonds of face value of Rs 1,000 each, in the nature of secured, redeemable, non-convertible debentures, having benefits under section 10(15)(iv)(h) of the Income Tax Act, 1961, as amended aggregating Rs 1,000 Crores with an option to retain an oversubscription upto the Shelf Limit (i.e. Rs 4033.13 Crores) (“Issue”).
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Instrument
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Tax Free Secured Redeemable Non-Convertible Bonds in the nature of Debentures
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Instrument Form
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In physical or in dematerialized form, at the option of the investors
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Trading
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Compulsorily in dematerialized form
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Credit Rating
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“CRISIL AAA/Stable” by CRISIL, “ICRA AAA” by ICRA
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Tenor/Redemption Date
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10 Years and 15 Years
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Lead Managers to the Issue
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A. K. Capital Services Ltd, SBI Capital Markets Ltd. & RR Investors Capital Services Pvt. Ltd.
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Trustee for the Bondholders
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GDA Trustee & Consultancy Ltd.
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Depositories
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NSDL and CDSL
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Proposed to be listed on
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BSE
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Mode of Payments
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1. At par cheques
2. Demand Drafts
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Issuances
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In dematerialized form and physical form*
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Trading
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In dematerialized form only
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Interest on Application Money
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Interest on application money on the amount allotted, subject to deduction of income tax under the provisions of the Income Tax Act, 1961, as amended, as applicable, to any applicants to whom Bonds are allotted pursuant to the Issue from the date of realization of the cheque(s)/demand draft(s) or 3 (three) days from the date of banking of the application (being the date of submission of each application as duly acknowledged by the Bankers to the Issue) whichever is later upto one day prior to the Deemed Date of Allotment, at the rate of coupon rate of 8.20% per annum and 8.30% per annum for Tranche 1 Series 1 and Tranche 1 Series 2 Bonds respectively
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Interest on Application Money which is liable to be refunded
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Interest on application money which is liable to be refunded to the applicants in accordance with the provisions of the SEBI Debt Regulations, or other applicable statutory and/or regulatory requirements, subject to deduction of income tax under the provisions of the Income Tax Act, 1961, as amended, as applicable, from the date of realization of the cheque(s)/demand draft(s) or 3 (three) days from the date of receipt of the application (being the date of presentation of each application as acknowledged by the Bankers to the Issue) whichever is later upto one day prior to the Deemed Date of Allotment, at the rate of 5% per annum
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Bond Particulars
Bond Particulars Options / Series
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Tranche-1 Series I
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Tranche-1 Series II
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Face Value per Bond
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Rs. 1,000
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Rs. 1,000
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Minimum Application Size
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Rs. 10,000 (10 Bonds)
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Rs. 10,000 (10 Bonds)
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In Multiples of
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Rs. 5,000 (5 Bonds)
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Rs. 5,000 (5 Bonds)
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Frequency of Interest payment
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Payable Annually
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Payable Annually
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Interest Rate p.a. (%)
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8.20%
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8.30%
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Interest Payment Date
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Every year on October 15, and on respective maturity
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Redemption /Maturity Date
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10 Years
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15 Years
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Redemption Amount
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Repayment of the Face Value plus any interest that may have accrued at the Redemption Date
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Repayment of the Face Value plus any interest that may have accrued at the Redemption Date
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Who can Apply?
Category I
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Category II
(Above Rs. 5 Lakh)
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Category III
(Below & including Rs. 5 Lakh)
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Public Financial Institutions, Statutory Corporations, Commercial Banks,
Co-operative Banks and Regional Rural Banks, which are authorised to
invest in the Bonds
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Resident Indian individuals
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Resident Indian individuals
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Provident Funds, Pension Funds, Superannuation Funds and Gratuity Funds, which are authorised to invest in the Bonds
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Hindu Undivided Families through the Karta
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Hindu Undivided Families through the Karta
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Foreign Institutional Investors (including sub-accounts)
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Non Resident Indians on repatriation as well as non-repatriation basis
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Non Resident Indians on repatriation as well as non-repatriation basis
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Insurance Companies registered with the IRDA
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National Investment Fund
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Mutual Funds
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Companies; bodies corporate and societies registered under the applicable laws in India and authorised to invest in the Bonds
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Public/private charitable/religious trusts which are authorised to invest in the Bonds
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Scientific and/or industrial research organisations, which are authorised to invest in the Bonds
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Partnership firms in the name of the partners
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Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (No. 6 of 2009)
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Applications cannot be made by:
Minors without a guardian name;
Foreign nationals;
Persons resident outside India other than NRIs ;
Overseas Corporate Bodies
Basis of Allotment
Category
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I
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II
(Above Rs. 5 Lakh)
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III
(Below & including Rs. 5 Lakh)
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Portion
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Institutional Portion
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HNI Portion
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Retail Portion
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Size in %
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50% of
Overall Issue Size on first come first serve basis
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25% of
Overall Issue Size on first come first serve basis
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25% of
Overall Issue Size on first come first serve basis
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