Latest news with #ZeroCouponBonds
Time of India
6 days ago
- Business
- Time of India
REC gets CBDT nod to issue ₹5,000 crore Zero Coupon Bonds
New Delhi: REC Limited , a Maharatna Central Public Sector Enterprise under the Ministry of Power, has received approval from the Central Board of Direct Taxes (CBDT) to issue Zero Coupon Bonds (ZCBs) aggregating ₹5,000 crore. The bonds will have a tenure of ten years and six months. According to a notification dated May 30, 2025, issued by the Department of Revenue, Ministry of Finance, the approval allows REC to issue five lakh ZCBs. These instruments will be issued at a deep discount and redeemed at face value upon maturity, offering tax advantages to investors under the Income-tax Act, 1961. In FY 2024–25, REC had issued CBDT-notified ZCBs worth ₹5,000 crore, which received subscription nearly seven times the offered amount. That issue was priced at a yield of 6.25 per cent, approximately 100 basis points lower than the prevailing market rates . "The success of the previous issue enabled REC to tap into a new segment of investors while further diversifying its funding sources at competitive rates," the company stated. REC, which functions as a leading non-banking financial company (NBFC), said it remains committed to exploring innovative financial instruments for efficient fund mobilisation to support India's growing energy infrastructure .
Mint
21-04-2025
- Business
- Mint
HUDCO share price jumps after CBDT's approval for ₹5,000 crore fundraise via Zero Coupon Bonds
Housing & Urban Development Corporation (HUDCO) shares jumped after the Ministry of Finance's tax wing, Central Board of Direct Taxes (CBDT) approved the ₹ 5,000 crore fundraiser through Zero Coupon Bonds, according to the BSE filing on Monday, April 21. According to the filing data, CBDT approved the ₹ 5,000 crore fundraising move and permitted HUDCO to issue five lakh Zero Coupon Bonds with a tenure of ten years and one month. The company will be liable to pay ₹ 5,000 at maturity after completing the debt instrument's time period. Zero-Coupon Bonds are debt instruments that do not pay a periodic interest or coupon rate like other bonds. These bonds are sold at a discount to their face value. 'We wish to inform that Central Board of Direct Taxes, Department of Revenue, Ministry of Finance has, vide Notification No. S.O. 1744(E) dated 17th April, 2025, permitted Housing and Urban Development Corporation Limited (HUDCO) to issue Five Lakh Zero Coupon Bonds with tenure of ten years one month for amount of Rs. 5,000 Crore to be paid on maturity,' said the company in the exchange filing. Earlier in April, the company's board of directors approved HUDCO's annual fundraising plan of ₹ 65,000 crore for the 2025-26 fiscal, and also increased its overall borrowing limit to ₹ 2.5 lakh crore, from its earlier level of ₹ 1.5 lakh crore, Mint reported. Housing & Urban Development Corporation (HUDCO) shares closed 2.62 per cent higher at ₹ 234.90 after Monday's stock market session, compared to ₹ 228.90 at the previous market close. HUDCO shares have given stock market investors more than 990 per cent returns in the last five years and over 20 per cent returns in the last one-year period. However, the shares have lost over 1 per cent on a year-to-date (YTD) basis in 2025. HUDCO shares hit their 52-week high level at ₹ 353.95 on July 12, 2024, while the 52-week low level was at ₹ 158.90 on March 3, 2025, according to BSE data. The shares have also gained 15.83 per cent in the last one-month period, and nearly 9 per cent in the last five stock market sessions. HUDCO's market capitalisation (M-Cap) was at ₹ 47,024.63 crore as of Monday's stock market session.
Mint
21-04-2025
- Business
- Mint
HUDCO share price jumps after CBDT's approval for ₹5,000 crore fundraise via Zero Coupon Bonds
Housing & Urban Development Corporation (HUDCO) shares jumped after the Ministry of Finance's tax wing, Central Board of Direct Taxes (CBDT) approved the ₹ 5,000 crore fundraiser through Zero Coupon Bonds, according to the BSE filing on Monday, April 21. According to the filing data, CBDT approved the ₹ 5,000 crore fundraising move and permitted HUDCO to issue five lakh Zero Coupon Bonds with a tenure of ten years and one month. The company will be liable to pay ₹ 5,000 at maturity after completing the debt instrument's time period. Zero-Coupon Bonds are debt instruments that do not pay a periodic interest or coupon rate like other bonds. These bonds are sold at a discount to their face value. 'We wish to inform that Central Board of Direct Taxes, Department of Revenue, Ministry of Finance has, vide Notification No. S.O. 1744(E) dated 17th April, 2025, permitted Housing and Urban Development Corporation Limited (HUDCO) to issue Five Lakh Zero Coupon Bonds with tenure of ten years one month for amount of Rs. 5,000 Crore to be paid on maturity,' said the company in the exchange filing. Earlier in April, the company's board of directors approved HUDCO's annual fundraising plan of ₹ 65,000 crore for the 2025-26 fiscal, and also increased its overall borrowing limit to ₹ 2.5 lakh crore, from its earlier level of ₹ 1.5 lakh crore, Mint reported. Housing & Urban Development Corporation (HUDCO) shares closed 2.62 per cent higher at ₹ 234.90 after Monday's stock market session, compared to ₹ 228.90 at the previous market close. HUDCO shares have given stock market investors more than 990 per cent returns in the last five years and over 20 per cent returns in the last one-year period. However, the shares have lost over 1 per cent on a year-to-date (YTD) basis in 2025. HUDCO shares hit their 52-week high level at ₹ 353.95 on July 12, 2024, while the 52-week low level was at ₹ 158.90 on March 3, 2025, according to BSE data. The shares have also gained 15.83 per cent in the last one-month period, and nearly 9 per cent in the last five stock market sessions. HUDCO's market capitalisation (M-Cap) was at ₹ 47,024.63 crore as of Monday's stock market session. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions. First Published: 21 Apr 2025, 04:20 PM IST
