Indian Railway Finance Corporation Ltd-Tax Free Bonds (IRFC)

Indian Railway Finance Corporation Ltd.( IRFC), (A Government of India Enterprise),  has filed the Draft Self Prospectus with SEBI and the issue is coming on January 27, 2012. As per the Prospectus the Bonds shall be issued in forms of Tax Free, Secured, Redeemable, Non Convertible Debentures with face value of Rs. 1000 each having Tax Benefits Under Section 10(15)(iv)(h) of the Income Tax Act, 1961. The issue will be on ‘first come first serve basis’.
As per information, the ratio of total issue will be – QIB & Corporate – 45%, HNIs – 25% and Retail part – 30% respectively.

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Early closure of the scheme announced till banking hour of February 03, 2012

Details of the Issue

Issuer	Indian Railway Finance Corporation Limited
Issue Opening Date	27/01/2012
Issue Closing Date	10/02/2012
Instrument	Tax-Free Secured Redeemable Non-Convertible Bonds in the nature of Debentures
Min Application Size	Rs 10,000/-
Thereafter in multiples of	Rs 5,000/-
Interest on Refund	4% p.a
Interest on application money	8% p.a.
Credit Rating	“CRISIL AAA/Stable” by CRISIL, “CARE AAA” by CARE and “ICRA AAA” by ICRA Limited
Issue Size	Rs. 3,000 Crore with an Green Shoe option (option to retain oversubscription) of up to Rs. 6,300 Crore
Security	The Bonds issued by the Company will be secured by creating a charge on the movable assets of the Company comprising of rolling stock such as wagons, locomotives and coaches by a first /paripassu charge, present and future, as may be agreed between the Company and the Debenture Trustee, pursuant to the terms of the Debenture Trust Deed.
Tranche	Series-I	Series-II
Tenor	10 Years	15 Years
Put Call Option	None	None
Maturity/ Redemption	At par on the expiry of 10th Year from the Deemed Date of Allotment	At par on the expiry of 15th Year from the Deemed Date of Allotment
Annual Coupon
Retail Investors (Category III)	8.15%	8.30%
Other Investors (Category I & II)	8.00%	8.10%
Note:	The differential rate for retail investor shall be applicable only to the first allottee. In the event of Sale/Transfer by the original allottee of a retail bond, the subsequent allottee will get the rates of the other investors’ category.
Interest Payment	Annual	Annual
Interest Payment Date	October 15 every year
Listing	Proposed on BSE Ltd. (“BSE”) and National Stock Exchange of India Ltd. (“NSE”). The Designated Stock Exchange for the Issue is BSE
Trustee	Indian Bank

Issue shall remain open for subscription for a minimum of 3 days or such extended period upto a maximum period of 30 days from the date of opening of the Issue. In case of early closure, IRFC shall ensure that public notice of such early closure is published on or before theday of such early date of closure through advertisement/s in a leading national daily newspaper.

Please find the IRFC subscription update.

IRFCL	Amt. Collected	Allocation	% subscribed
Cat I	11566	2835	408%
Cat II	4436	1575	282%
Cat III	1872	1890	99%

All values in Rupees Crore

Figures as on 02.02.2012 EOD

Basis Of Allotment

The basis of allotment of IRFC has been approved.

Summary is as under:

IRFC
Category	Considered for allotment (Bonds)	Allotted (Bonds)	Percentage
1	129,696,710	28,210,005	21.75
2	30,076,115	15,672,225	52.11
3 (firm allotment)	18,315,070	18,315,070	100.00
3 (proportionate- last day)	760,320	491,600	64.66
	178,848,215	62,688,900

Listing Details on NSE

• Date: 2-March
• ISIN
• N1 – INE053F07520
• N2 – INE053F07538
• Symbol: IRFC

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Tags: IRFC, January 2012, Tax Free Bonds

Category: Blog, Fixed Deposit, Tax Free Bonds