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Indian Railway Finance Corporation Limited (IRFC)
*For category IV - Tranche II series IIB option for 15 years
Issue Highlights:
| Issue Opens | Friday, February 28, 2014 | Minimum Application | 5 Bonds (Rs. 5,000) (Individually or collectively, across all series of Bonds) |
| Issue Closes | Friday, March 7, 2014 (Extended till March 14, 2014) |
Annualized Yield (Retail - Category IV) |
8.44% p.a Tranche II series IB for 10 yrs 8.88% p.a Tranche II series IIB for 15 yrs |
| Issue Price | Rs. 1,000/- per Bond | Credit Ratings | "CRISIL AAA/Stable" by CRISIL "[ICRA] AAA" by ICRA "CARE AAA" by CARE |
Business Overview:
Our Company was incorporated on December 12, 1986 under the Companies Act as a public limited company registered with the Registrar of Companies, National Capital Territory of Delhi and Haryana and received our certificate for commencement of business on December 23, 1986. The GoI, Ministry of Railways, incorporated our Company as a financial arm of Indian Railways, for the purpose of raising the necessary resources for meeting the developmental needs of the Indian Railways. The President of India along with twelve (12) other nominees hold 100% of our equity share capital.
Issue Highlights:
| Issue Opens | Friday, February 28, 2014 |
| Issue Closes | Friday, March 7, 2014 (Extended till March 14, 2014) |
| Issue Price | Rs. 1,000/- per Bond |
| Face Value | Rs. 1,000/- per Bond |
| Issue Size | Rs. 1,50,000 Lakhs with option to retain oversubscription upto Rs. 1,41,687.85 lakhs. Total issue size of the tranche - Rs. 2,91,687.85 lakhs |
| Minimum Application | 5 Bond (Rs. 5,000) (Individually or collectively, across all series of Bonds) |
| Rating | "CRISIL AAA/Stable" by CRISIL, "[ICRA] AAA" by ICRA and "CARE AAA" by CARE |
| Listing On | NSE and BSE |
| Registrar | Karvy Computershare Private Limited |
| Annualized Yield (Retail - Category IV) |
8.44% p.a Tranche II series IB for 10 yrs 8.88% p.a Tranche II series IIB for 15 yrs |
| Annualized Yield (Non Retail - Category I, II and III) |
8.19% p.a Tranche II series IA for 10 yrs 8.63% p.a Tranche II series IIA for 15 yrs |
Allotment is on First Come First Serve Basis
Specific terms for each series of Bonds
| Options / Series* | Tranche II Series IA | Tranche II Series IIA |
| Coupon rate p.a. for Category I, II, and III | 8.19% | 8.63% |
| Annualized yield p.a. for Category I, II & III # | 8.19% | 8.63% |
| Options / Series* | Tranche II Series IB | Tranche II Series IIB |
| Coupon Rate p. a. for Category IV | 8.44% | 8.88% |
| Annualized yield p.a. for Category IV # | 8.44% | 8.88% |
| Frequency of Interest Payment | Annual | Annual |
| Minimum Application | 5 Bonds (Rs. 5,000) (Individually or collectively, across all series of Bonds) | |
| In Multiples of | One Bond (Rs. 1,000/-) | |
| Face Value | Rs. 1,000/- | |
| Issue Price | Rs. 1,000/- | |
| Issue Size | Rs. 1,50,000 Lakhs with option to retain oversubscription upto Rs. 1,41,687.85 lakhs. Total issue size of the tranche - Rs. 2,91,687.85 lakhs | |
| Tenor | 10 Years | 15 Years |
| Redemption Date | At the end of 10 Years from the Deemed Date of Allotment | At the end of 15 Years from the Deemed Date of Allotment |
| Redemption Amount (Rs./Bond) | Repayment of the Face Value plus any interest that may have accrued at the Redemption Date | |
* The Company would allot Tranche II Series IA/IB Bonds (depending upon the category of Applicant) to all valid applications, wherein the applicants have not indicated their choice of the relevant series of Bonds in their Application Form.
# In pursuance of CBDT Notification and for avoidance of doubts, it is clarified as under:
- The coupon rates indicated under Tranche II Series IB and Tranche II Series IIB shall be payable only on the Portion of Bonds allotted to Category IV in the Issue. Such coupon is payable only if on the Record Date for payment of interest, the Bonds are held by investors falling under Category IV.
- In case the Bonds allotted against Tranche II Series IB and Tranche II Series IIB are transferred by Category IV to Category I, Category II and/or Category III, the coupon rate on such Bonds shall stand at par with coupon rate applicable on Tranche II Series IA and Tranche II Series IIA respectively.
- If the Bonds allotted against Tranche II Series IB and Tranche II Series IIB are sold/ transferred by the Category IV to investor(s) who fall under the Category IV as on the Record Date for payment of interest, then the coupon rates on such Bonds shall remain unchanged;
- Bonds allotted against Tranche II Series IB and Tranche II Series IIB shall continue to carry the specified coupon rate if on the Record Date for payment of interest, such Bonds are held by investors falling under Category IV;
- If on any Record Date, the original Category IV allotee(s)/ transferee(s) hold the Bonds under Tranche II Series IB and Tranche II Series IIB for an aggregate face value amount of over Rs. 10 lakhs, then the coupon rate applicable to such Category IV allottee(s)/transferee(s) on Bonds under Tranche II Series IB and Tranche II Series IIB shall stand at par with coupon rate applicable on Tranche II Series IA and Tranche II Series IIA respectively;
- Bonds allotted under Tranche II Series IA and Tranche II Series IIA shall carry coupon rates indicated above till the respective maturity of Bonds irrespective of Category of holder(s) of such Bonds;
- For the purpose of classification and verification of status of the Category IV of Bondholders, the aggregate face value of Bonds held by the Bondholders in all the Series of Bonds, allotted under the relevant Tranche Issue shall be clubbed and taken together on the basis of PAN. The Company would allot Tranche II Series IA/IB Bonds (depending upon the category of Applicant) to all valid applications, wherein the applicants have not indicated their choice of the relevant series of Bonds in their Application Form.
Click here to download the prospectus of this Bond Issue.
Who Can Apply
| Categories | Reservation for Categories | Basis of allocation incase of over subscription | |
| Category I: (QIB Portion)* |
*With regard to Section 372A(3) of the Companies Act, 1956, kindly refer to General Circular No. 6/ 2013, dated March 14, 2013 by Ministry of Corporate Affairs, GoI, which clarifies that in cases where the effective yield (effective rate of return) on tax free bonds is greater than the yield on the prevailing bank rate, there is no violation of Section 372A(3) of the Companies Act, 1956. |
10% of Overall Issue Size | On first-come-first-serve basis |
| Category II: (Corporate Portion)** |
** With regard to Section 372A(3) of the Companies Act, 1956, kindly refer to General Circular No. 6/ 2013, dated March 14, 2013 by Ministry of Corporate Affairs, GoI, which clarifies that in cases where the effective yield (effective rate of return) on bonds is greater than the yield on the prevailing bank rate, there is no violation of Section 372A(3) of the Companies Act, 1956. |
30% of Overall Issue Size | On first-come-first-serve basis |
| Category III: (HNI Portion) |
The following Investors applying for an amount aggregating to above Rs. 10 lakhs across all Series of Bonds in each Tranche Issue:
|
20% of Overall Issue Size | On first-come-first-serve basis |
| Category IV: (Retail Portion) Individual Investor |
The following Investors applying for an amount aggregating to up to and including Rs. 10 lakhs across all Series of Bonds in each Tranche Issue:
|
40% of Overall Issue Size | On first-come-first-serve basis |
4 Easy Ways to Apply
Apply on Website
- Login to Edelweiss.in >> Trade
- Click on 'IPO' tab
- Click on Order IPO
- Click on Apply button next to the IRFC Tranche II Bond option you wish to apply.
- Enter relevant details like quantity and price and hit the 'Submit' button.
- Post your confirmation, order will be placed successfully
Use Xtreme Trader
- Login to Xtreme Trader
- Click on Weblinks on the top menu bar
- Click on 'IPO'
- Click on Order IPO
- Click on Apply button next to the IRFC Tranche II Bond option you wish to apply.
- Enter relevant details like quantity and price and hit the 'Submit' button.
- Post your confirmation, order will be placed successfully
Use the Mobile Trader App
- Login to Edelweiss Mobile Trader
- Tap on 'IPO' button at the bottom of the App
- Tap on the "IRFC Tranche II Bond Issue", and hit the "Apply" button
- Enter relevant details like quantity and price and hit the 'Submit' button
- Post your confirmation, order will be placed successfully
Call Customer Care to Apply
- Call up 1800-102-333-5
- Select your preferred language: Press 1 for English or 2 for Hindi
- Press 1 to confirm that you are an existing account holder
- Press 5 to apply in IPO
- Speak to the customer care executive and provide the REC Option you wish to apply along with Quantity and Price.
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