Friday, December 7, 2012

REC Tax Free Bonds (December) 2012-13 Subscription

As of end of the day on Friday, the bonds are subscribed 1.56 times. Do keep in mind the issue size is Rs. 1000 crores but there also exists an option to retain over subscription aggregating up to shelf limit of Rs. 4,500 crores.

The distribution of participation so far has been as follows.

No. of times subscribed
Category 1
Public Financial Institutions
Category 2
Category 3
Resident Indians investing more
than 10 lakhs
Category 4
Resident Indians investing less
than 10 lakhs

There has not been much interest from financial institutions, but as expected there has been good participation from the retail investor as the returns offered are quite attractive for those in the 20% and 30% tax bracket.

Take care and good luck!

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