The issues of both Power Finance Corporation Limited (PFCL) and National Hydroelectric Power Corporation (NHPC) are currently open and will close on November 11, 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: CARE, CRISIL and ICRA have assigned ratings of AAA (Triple A) to PFCL’s NCD whereas CARE, ICRA and India Ratings and Research have assigned ratings of AAA (Triple A) to NHPC’s issue. Such instruments are considered to have high degree of safety regarding timely servicing of financial obligations.
Application size: Both issues offer minimum application size of Rs 5,000 for 5 NCDs as the face value of the bond is Rs 1000.
PFCL aims to collect Rs 750 crore and has a greenshoe option to retain another Rs 3125.90 crore if the issue oversubscribes. The maximum size of issue will be Rs 3875.90 crore.
However, NHPC seeks to collect Rs 500 crore with an option to retain an additional 500 crore if the issue oversubscribes. There will be no ceiling limit for the investors.
Effective yield and Maturity: Both the issues are offering effective tax-free return of 8.92% per annum to retail investors for the tenure of 20 years. Similarly, they would provide effective tax-free return of 8.43% and 8.79% to retail investors for the period of 10 and 15 years respectively.
|
Category/ Yield Tenure |
10 Years |
15 Years |
20 Years |
|
Institutional Investors |
8.18% |
8.54% |
8.67% |
|
Corporates |
8.18% |
8.54% |
8.67% |
|
HNIs |
8.18% |
8.54% |
8.67% |
|
Retail investors |
8.43% |
8.79% |
8.92% |
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 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: Both issues offer brokerage up to 0.75% depending on the category of investors. Highest brokerage will be offered upfront for the distribution of NCDs to retail investors.
Trustee: For PHCL - IL&FS Trust Company and for NHPC – IDBI Trusteeship Services
Registrars for both: Karvy Computershare
Listing: PHCL issue will be listed on BSE while NHPL’s NCD will be listed on BSE as well as NSE.
Depositories for both: NSDL and CDSL
Withdrawal of applications: In case of withdrawal, face value of NCDs will be paid along with the interest that may have accrued at the redemption date.
Lead Managers: For PHCL- ICICI Securities, AK Capital Services, Axis Capital and Edelweiss Financial Services.
For NHPL- AK Capital Services and Axis Capital
Both the companies have allocated 40% of NCDs for the individual category (Retail), 25% for HNIs, 20% for corporates and rest 15% for QIB.
