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Aditya Birla Capital is preparing to raise up to INR 7.5 billion through the reissue of its February 2029 bonds, including a greenshoe option of INR 5.5 billion, according to market participants during the past week. The issue, with an effective tenor of nearly three years, will see coupon rates determined through bidding. Rated AAA by CRISIL, the offering reflects continued investor appetite for high-grade corporate debt. The company has invited both coupon and commitment bids, with the transaction forming part of a broader pipeline of issuances that includes deals by Kotak Mahindra Prime and Triumph Composites in the domestic bond market.
Aditya Birla Capital plans to raise up to INR 7.5 billion through a reissue of its existing February 2029 bonds during the past week, as the financial services firm looks to tap domestic debt markets amid steady investor demand for high-rated instruments. The proposed issuance includes a base size of INR 2 billion along with a greenshoe option of INR 5.5 billion, allowing the company to retain additional subscriptions if demand remains strong. Advertisement
The bonds, which carry a coupon of 8.16% from the original issuance, have an effective residual maturity of approximately two years and ten months. However, the final coupon for the reissued portion will be determined through a bidding process, with the company inviting both coupon and commitment bids ahead of the issuance.
The offering has been assigned a AAA rating by CRISIL, indicating a high degree of creditworthiness and low default risk. Such ratings typically attract institutional investors including mutual funds, insurance companies, and pension funds seeking stable returns through relatively secure debt instruments.
The transaction comes amid sustained activity in India’s corporate bond market, where issuers across sectors are accessing capital through a mix of fresh issuances and reissuances. Market participants indicated that reissuing existing bonds allows companies to consolidate liquidity in specific maturities while potentially benefiting from favourable market conditions.
Other issuers have also been active in the market during the same period. Kotak Mahindra Prime recently raised INR 7 billion through bonds with a tenure of three years and two months at a coupon of 7.74%. Meanwhile, Triumph Composites is set to raise INR 12.56 billion via five-year bonds offering a coupon of 10.50% on a quarterly basis, with a rating of AA- from India Ratings.
The continued pipeline of issuances reflects stable demand conditions in the domestic fixed-income market, particularly for instruments rated in the highest credit categories. Issuers are leveraging this demand to diversify funding sources and manage liabilities efficiently, while investors remain focused on balancing yield and credit risk.
Details regarding investor allocation and final pricing are expected to be determined following the bidding process, with the company yet to provide an official response on the transaction.
Source - Reuters
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