IREDA tax-free bonds see huge appetite

IREDA offered tax free bonds to raise up to Rs.1,716 crore. This amount would be invested in renewable energy projects

India Renewable Energy Development Agency Ltd (IREDA) which issued Rs. 1,000 crore tax-free bonds has received bids for around 52.33 lakh bonds, or nearly 52% of the 1 crore paper up for sale within 40 minutes of its listing, says a report. The issue closes on January 22, 2016 with an option for early closure.
 
According to the BSE website, as of 12:10 pm, the issue received subscriptions worth Rs.1,16,29,070( 116.29% ). 
 
IREDA offered tax free bonds to raise up to Rs.1,716 crore. This amount would be invested in renewable energy projects.
 
Around 20% of the bond is entitled for qualified institutional buyers, domestic corporate houses and high net-worth individuals with interest at the coupon rate of 7.28%, 7.49% and 7.43% for a tenor of 10 years, 15 years and 20 years. These investors fall under Categories I, II and III, respectively. Retail individual come under Category IV who’ll be declared interest on coupon rate of 7.53%, 7.74% and 7.68%.