The issue is currently open and will close on September 23, 2013.
Who can apply: Resident individuals, HUFs, partnership firms, companies and body corporates, banks, public financial institutions, national investment funds, mutual funds, venture capital, insurance companies, commercial banks, co-operative banks, public/private charitable trusts, industrial research organizations and other eligible categories.
Credit Ratings: CRISIL, CARE, IRRPL and ICRA have assigned ratings of AAA (Triple A) to REC’s NCB. Such instruments carry low credit risk.
Effective yield and Maturity:
|
Category/ Yield Tenure |
10 Years |
15 Years |
20 Years |
|
Institutional Investors |
8.01% |
8.46% |
8.37% |
|
Corporates |
8.01% |
8.46% |
8.37% |
|
HNIs |
8.01% |
8.46% |
8.37% |
|
Retail investors |
8.26% |
8.71% |
8.62% |
Application size: The minimum application size is Rs 5,000 for 5 NCBs as the face value of the bond is Rs 1000. The NCB issue aims to collect Rs 1000 crore and has a greenshoe option to retain another Rs 2500 crore if the issue oversubscribes. The maximum size of issue will be Rs 3500 crore.
Who can sell the product: Registered stock brokers with any stock exchange along with their respective sub-brokers, banks and intermediaries selected by the issuing company.
How can an IFA get register to sell the product: An IFA has to sign the sub-broker agreement with a stock broker to be eligible to sell the bonds.
Tentative brokerage structure: Brokerage ranges between 0.40% and 0.75% depending on the category of investors. Highest brokerage will be offered upfront for the distribution of NCBs to retail investors.
Trustee: SBI Cap Trustee Company Limited.
Registrars: Karvy Computershare,
Listing: The NCB will be listed on BSE. However, the applicants can also apply for NCBs in physical mode.
Refund of applications: REC will repay the invested amount along with interest rate of 5% per annum, subject to income tax deduction, if NCBs are not issued after receipt of payments. In case of withdrawal, face valueof NCBs will be paid along with the interest that may have accrued at the redemption date.
Lead Managers: ICICI Securities, A K Capital Services, Axis Capital and Edelweiss Financial Services.
REC has allocated 40% of NCBs for the individual category while 20% each will be distributed among institutional investors, HNIs, corporates and QIBs.
