In a move reflecting strong market confidence, several major Indian companies have raised more than ₹12,000 crore from the domestic debt capital market ahead of the Reserve Bank of India’s (RBI) monetary policy decision.
The bond issue, spanning various sectors including metal, beverages, housing finance, and infrastructure, showcases how firms are tapping into domestic debt markets to meet their financial needs.
Vedanta, a prominent metal and mining conglomerate, raised a significant ₹5,000 crore in bonds. The funds were raised in 3 separate tranches. The first tranche of ₹2,400 crore involved bonds maturing in 2 years and 5 months, offering a coupon rate of 9.31%. The second tranche of ₹1,750 crore was for bonds maturing in 3 years at a slightly higher coupon rate of 9.45%. The third tranche, amounting to ₹850 crore, was for bonds maturing in 2 years at a coupon rate of 8.95%.
The proceeds from these bond issuances are intended for general corporate purposes, including the repayment of existing debt and capital expenditure. Major mutual funds and insurance companies subscribed to the anchor portion of the issue, with 30% of the issue being taken up by these institutional investors.
Read More: Vedanta to Raise ₹5,000 Crore via NCDs Following a Strong Q4 FY25 Profit Surge!
Jubilant Bhartia Group, through its subsidiaries Jubilant Bevco and Jubilant Beverages, raised ₹5,650 crore through bonds. Jubilant Bevco raised ₹3,000 crore through bonds maturing in 3 years at a yield of 8.78%, with a coupon rate of 9.15%. Meanwhile, Jubilant Beverages raised ₹2,650 crore, also through 3-year bonds, at a slightly lower yield of 8.65% and a coupon of 9%.
The proceeds will help fund the group’s acquisition of a 40% stake in Hindustan Coca-Cola Holdings. The acquisition is valued at ₹12,650 crore. The anchor portion of this bond issue, ₹1,695 crore, was subscribed by major mutual funds.
Apart from Vedanta and Jubilant, other firms also capitalised on the bond market. Bajaj Housing Finance, the housing finance arm of Bajaj Finance, raised ₹500 crore through 3-year bonds with a coupon rate of 7.01%. Rajgarh Transmission, part of GR Infraprojects, also raised ₹308 crore through bonds maturing in three years at a rate of 7.03%.
State-owned Housing and Urban Development Corporation (Hudco) raised ₹750 crore, although it fell short of its initial target of ₹3,000 crore. Hudco’s bonds were offered at a coupon rate of 6.52%.
The bond issuance by these companies comes just ahead of the RBI's expected decision on the repo rate.
These bond issuances demonstrate that companies are strategically raising funds ahead of the RBI’s anticipated decision. These companies are positioning themselves to capitalise on more favourable financial conditions.
The total bond sweep by Indian firms, amounting to over ₹12,000 crore, is a clear indication of the confidence businesses have in the domestic capital market. These bond issuances will fuel further corporate investment, spurring growth across key sectors such as metals, beverages, and housing finance.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jun 5, 2025, 2:17 PM IST
Team Angel One
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