IREDA Tax Free Bonds

Dalal & Broacha Stock

Broking Pvt Ltd.

2007

Indian Renewable Energy Development Agency Ltd. (IREDA)

ISSUE DETAILS:
Issue Opening Date

Friday

January 08, 2016

Issue Closing Date

Friday

January 22, 2015

HIGHLIGHTS OF THE BONDS:

Issuer
Issue Size

Indian Renewable Energy Development Agency Limited

Rs 1000 Crores with a green shoe option up to Rs.1716 Crore.

Instrument

Tax free bonds in the nature of secured redeemable non-convertible

bonds of the Company of face value of Rs. 1,000 each, having tax
benefits under section 10(15)(iv)(h) of the Income Tax Act, 1961
In physical and dematerialized form as specified by an Applicant in the
Application Form
ICRA AA+ by ICRA
IND AA+ by IRRPL

Issuance
Credit Rating

Depositories
Listing of Bonds
proposed on

NSDL and CDSL

BSE

Interest on Application Money receiving allotment:

At the rate of 7.28% p.a., 7.49% p.a. and 7.43% p.a. on Tranche I Series 1A, Tranche I Series
2A and Tranche I Series 3A respectively for allottees under Category I, Category II and
Category III Portion, and at the rate of 7.53% p.a., 7.74% p.a. and 7.68% p.a. on Tranche I
Series 1B, Tranche I Series 2B and Tranche I Series 3B respectively for allottees under
Category IV Portion, subject to deduction of tax at source, as applicable.
Interest on Application Money which is liable to be refunded:
At the rate of 5.00% per annum, (except for ASBA Applicants), subject to deduction of tax at
source, as applicable.

IREDA Tax Free Bonds

Dalal & Broacha Stock

Broking Pvt Ltd.

2007

ISSUE PARTICULARS:
Tenor
Face Value per Bond
Minimum Application
In Multiples of
Frequency of Interest
Payment
Series for Category I,
II & III
Coupon Rate (% p.a.)
for applicants under
Category I II and III
Series for Category IV
Coupon Rate (%) per
annum for Category
IV*
Redemption/Maturity
Date
Redemption Amount

10 Years
Rs 1,000
Rs. 5,000 (5 Bonds)
Rs. 1,000 (1 Bond)
Payable annually

15 Years
Rs 1,000
Rs. 5,000 (5 Bonds)
Rs. 1,000 (1 Bond)
Payable annually

20 Years
Rs 1,000
Rs. 5,000 (5 Bonds)
Rs. 1,000 (1 Bond)
Payable annually

Tranche I Series 1A

Tranche I Series 2A

Tranche I Series 3A

7.28%

7.49%

7.43%

Tranche I Series 1B

Tranche I Series 2B

Tranche I Series 3B

7.53%

7.74%

7.68%

At the end of 10 years

from the Deemed Date
of Allotment

At the end of 15 years

from the Deemed Date
of Allotment

Repayment of the Face

Value plus any interest
that may have accrued
at the Redemption
Date

At the end of 20
years from the
Deemed Date of
Allotment
Repayment of the
Repayment of the
Face Value plus any
Face Value plus any
interest that may have interest that may
accrued at the
have accrued at the
Redemption Date
Redemption Date

Effective Yield for the Issue: For Category I II and III

Net Return (Post Tax)
Gross Return(Pre Tax)

10 Years
7.28%
11.13%

15 Years
7.49%
11.45%

20 Years
7.43%
11.36%

15 Years
7.74%
11.20%

20 Years
7.68%
11.11%

Effective Yield for the Issue: For Category IV *

Net Return (Post Tax)
Gross Return (Pre Tax)

10 Years
7.53%
10.90%

*Calculation is based on highest tax bracket

* In case the Bonds held by the original allottees under Category IV Portion are sold/transferred by Resident
Individual Investors (RII) to Non Resident Individual Investors (Non RII), the coupon rate shall stand revised to
the coupon rate applicable for allottees falling under Category I,II and III Portion.
** The Company shall Allot Tranche I Series IA/Series IB (depending upon the category of applicants) to all
valid applications, wherein the Applicants have not indicated their choice of the relevant Series of Bond.

Dalal & Broacha Stock

Broking Pvt Ltd.

IREDA Tax Free Bonds

2007

Who Can Apply?

Category I
Institutional

Category II
Corporates*

Category III
High Net worth
Individuals

Category IV
Retail Individual
Investors

1. Foreign Portfolio Investors (other

than Category III FPIs) including
Sovereign Wealth Funds, Pension
and Gratuity Funds registered
with SEBI as Foreign Portfolio
Investors;
2. Public financial institutions,
scheduled commercial banks,
multilateral and bilateral
development financial
institutions, state industrial
development corporations which
are authorized to invest in bonds;
3. Alternative Investment Fund
eligible to invest under the
SEBI(Alternative Investment
Funds) Regulations, 2012,
4. Mutual Funds registered with
SEBI
5. Insurance companies registered
with the Insurance Regulatory
and Development Authority,
6. Provident funds and Pension
Funds with a minimum corpus of
Rs 25 Crores,
7. The National Investment Fund set
up by resolution F. No.2/3/2005DD-II dated November 23, 2005
of the Government of India,
published in the Gazette of India,
8. Insurance funds set up and
managed by the army, navy, or
air force of the Union of India or
set up and managed by the
Department of Posts, India

1. Companies within
the meaning of
section 2(20) of
the Companies
Act,
2. Limited Liability
Partnerships
formed and
registered under
the provisions of
the limited
partnership Act,
2008.
3. Statutory
corporations/bodi
es,
4. Cooperative Banks
5. Trust including
Public/ Private/
Charitable/Religio
us trusts;
6. Regional rural
banks;
7. Association of
Persons
8. Partnership firms
in the name of
partners; and any
other legal entities
/persons as may
be permissible
under CBDT
notification and
authorized to
invest in bonds.

1. Resident Indian
individuals who apply
for Bonds aggregating
to a value more than
Rs. 10 lacs, across all
Series of Bonds in the
Issue;
2. Hindu Undivided
Families through the
Karta who apply for
Bonds aggregating to a
value more than Rs.
10 lacs, across all
Series of Bonds in the
Issue;

1. Resident Indian
individuals who
apply for Bonds
aggregating upto
and including Rs.
10 lacs, across all
Series of Bonds in
the Issue;
2. Hindu Undivided
Families through
the Karta who
apply for Bonds
aggregating upto
and including Rs.
10 lacs, across all
Series of Bonds in
the Issue;

* With regard to Section 186 (7) of the Companies Act, 2013, kindly refer to General Circular No. 6/ 2015,
dated April 9, 2015 Ministry of Corporate Affairs, GoI clarifying that in cases where the effective yield on tax free
bonds is greater than the prevailing yield of 1 year, 3 year,5 year, 10 year Government security closest to the
loan, there shall be no violation of section186(7) of the Companies Act, 2013.

Dalal & Broacha Stock

Broking Pvt Ltd.

IREDA Tax Free Bonds

2007

Applications cannot be made by:

1. Minors without a guardian name. A guardian may apply on behalf of a minor.

However, Applications by minors must be made through Application Forms that
contain the names of both the minor Applicant and the guardian;
2. Persons resident outside India and foreign nationals (including NRIs, FIIs, and QFIs)
3. Overseas Corporate Bodies;
4. Indian Venture Capital Funds and Foreign Venture Capital Investor;
5. Person ineligible to contract under application statutory/regulatory requirements;
6. Any category of investor other than the investors mentioned under categories 1, 2, 3
and 4.

Basis of Allotment
Category
Size in %
Basis of allocation
in case of
oversubscription

Category I
Institutional
20% of Overall
Issue Size

Category II
Corporates
20% of Overall
Issue Size

Category III
(HNIs)
20% of Overall
Issue Size

Category IV
(RIIs)
40% of Overall
Issue Size

On first-come-first-serve basis for all categories

We strongly recommend the issue for subscription.

This This document has been prepared and compiled from reliable sources. While utmost care has been taken to ensure that the facts
stated are accurate and opinions given are fair and reasonable, neither the Company nor any of its Directors, Officers or Employees shall in
any way be responsible for the contents. The Company, its Directors, Officers or Employees may have a position or may otherwise be
interested in the investment referred in this document. This is not an offer or solicitation to buy, sell or dispose off any securities mentioned
in this document.

Report Prepared by: Mr. Mukesh Ranjan

For Further details contact: Mr. Mahendra Panikkar / Mr. Bimal Batavia / Mr. Tiwari / Mr. Navish Bangera
/ Ms. Mita Sanghvi / Ms. Bijal Sanghvi/ Mr. Smeet Shah/ Mr. Vihang Sampat/ Ms. Meenakshi Singh
1114/15, 11th floor, Maker Chamber V 221, Nariman Point, Mumbai-400 021
Tel: 91 22- 66212512/ 515 Direct: Fax: 91-22-6621 2550
E-mail: mf.sales@dalal-broacha.com