Four major companies successfully raised ₹4,165 crore through bond issuances on Monday, demonstrating strong investor appetite for debt instruments. According to reports from Business Standard, the successful issuances included IREDA raising ₹1,500 crore through bonds maturing in three years and six months at a cut-off yield of 7.34 per cent. Godrej Industries also participated in the market, raising ₹1,000 crore through a two-part issue maturing in September 2031 and December 2031 at a cut-off annual yield of 8.23 per cent.
The bond market also witnessed significant participation from real estate and infrastructure sectors. Embassy Office Parks REIT raised ₹700 crore through bonds maturing on June 22, 2029, priced at par with a coupon of 7.49 per cent and quarterly payment structure. India Infradebt Ltd completed the major issuances by raising ₹965 crore through bonds maturing on December 23, 2031, carrying a coupon of 7.92 per cent with annual payments and priced at par.
The successful bond issuances mark a revival in the primary market after a challenging period. As reported by Business Standard, the ₹4,165 crore raised represents a significant improvement from the comparatively muted activity in the first two months of the current financial year. Indian companies had raised only ₹1.07 trillion through the domestic bond market in April and May, down nearly 58 per cent from the year-ago period and the lowest mobilisation in the first two months of a financial year since FY23.
The revival in bond market activity comes as borrowers continue to tap the debt market amid easing funding costs and strong demand from institutional investors. Market participants attributed the previous decline to elevated bond yields amid geopolitical tensions in West Asia, which had kept issuers away from the debt market. In April and May, several large state-owned issuers had withdrawn planned bond issuances amid concerns over pricing and demand, with NABARD among the issuers that withdrew its planned bond issue.
