Saturday, August 31, 2013

REC tax free bonds August 2013 subscription status

Just thought that I would do a quick post on the subscription status of REC tax free bonds, the first such offering for the financial year 2013-14, for the Indian readers. The bonds were oversubscribed on the first day i.e. August 30 itself. But that's what one would expect if the interest rate offered is as high as 8.71% (tax free) for 15 years! BTW, the issue is also open to NRIs.

The following table shows the subscription status at the end of Day 1.

Number of times subscribed
1 – Qualified Institutional Bidders
2 – Non-Institutional Bidders
3 – High Net Worth Individuals
4 – Retail Individual Investors

But no need to get disappointed if you were planning to subscribe to these bonds on Monday. While the original issue size is Rs. 1000 crore, the bonds do come with the option to retain over subscription upto Rs. 2500 crore. But do hurry, as that too should get exhausted early next week.

Take care and good luck!

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ramesh said...

Where do you get this info? I had seen another blog source indicating oversubscription on middle of first day itself including the green shoe option..your table indicates otherwise...any pointers will be appreciated..ramesh

positiontrader said...

Hi Ramesh!

The figures are from the NSE website. And no, the green shoe option is not exhausted even as of 3rd September.