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The tax-free bond issue of Rural Electrification Corporation (REC) will close on September 16, the company has said in an advertisement.
The issue is closing ahead of the scheduled date of September 23 as it has nearly garnered full subscription.
The Rs 3,500 crore offering has so far mopped up Rs 3,350 crore led by good subscription from retail investors.
Barring the qualified institutional buyer (QIB) category, all three categories have been fully subscribed, stock exchange data shows.
The QIB category has so far received subscription of Rs 240 crore as against Rs 700 crore on offer. Meanwhile, the corporate segment has received bids worth Rs 847 crore against Rs 700 crore on offer.
Meanwhile, the high networth individual segment has seen bids worth Rs 750 crore against Rs 700 on offer and the retail investor segment has seen bids worth Rs 1,500 crore against Rs 1,400 crore on offer.
Meanwhile, the high networth individual segment has seen bids worth Rs 750 crore against Rs 700 on offer and the retail investor segment has seen bids worth Rs 1,500 crore against Rs 1,400 crore on offer.
Tax-free bond issues have 40% reservation for retail, those investing less than Rs 10 lakh, while 20% each for the rest of the three categories.
The tax-free coupon rate offered by REC are 8.01%, 8.46% and 8.37% for 10-year, 15-year and 20-year respectively. The coupon rate for retail investors are 25 basis points higher.
