REC raises limit for tax-free bonds to Rs 6K cr

State-owned REC has increased the limit for public issue of tax free secured redeemable non- convertible bonds to Rs 6,000 crore for the current financial year, ending March 31.
"Rural Electrification Corporation has filed an amendment in the shelf prospectus for increasing the shelf limit to Rs 6,000 crore from Rs 5,000 crore, with the office of Registrar of Companies," the company said in a stock exchange filing.
A shelf prospectus is a term used for a prospectus issued by a financing bank or institution.
In Tranche-I, the company raised Rs 3,500 crore in September through the tax free bond issue.

REC has also filed Prospectus Tranche-ll for raising Rs 250 crore, with an option to retain over-subscription of up to Rs 809.39 crore, aggregating up to Rs 1,059.39 crore through Public Issue of Tax Free Secured Redeemable Non-convertible Bonds.
This issue in the nature of Debentures of REC will open on February 28, 2014 for subscription and is scheduled to close on March 14, 2014.
REC scrip closed at Rs 188.05, up 1.68 per cent, on the BSE.