India Corporate Bonds
Yields steady as traders shift focus to primary mkt
This story was originally published at 20:11 IST on 10 September 2025
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By Vaishali Tyagi
MUMBAI – Corporate bond yields ended steady Wednesday as market participants shifted their focus to issuances in the primary market, dealers said. With several biddings in the primary market, participation in the secondary market was dull Wednesday, dealers said. "Activity in the secondary market was more or less subdued today (Wednesday), as most traders focused on primary market issuances...as everyone was waiting for fresh issuances to tap the market," a dealer at a brokerage firm said. "The primary market is gaining traction, with some key issuers raising significant amounts and more expected to follow the suit in the coming weeks."
The primary market was busy Wednesday with two big issuances during the day, along with several issuances of non-banking finance companies. Manipal Hospitals Pvt. Ltd. tapped the debt market and raised a whopping INR 37.17 billion through bonds maturing on Sept. 12, 2027 at a coupon of 9.03%. Another issuer, Bajaj Finance Ltd. raised INR 13.50 billion through a 10-year bond issue, at 7.24%. On Wednesday, bond issuances aggregating to INR 99.50 billion were lined up to raise funds from corporate debt market.
Dealers expect a surge in corporate bond market activity in the second half of the year, typically seeing significant issuances from Oct-Mar. "We expect more key issuers to tap the market as the second half of the year is approaching... generally, in the second half of the year, the bond market sees big issuances... tomorrow (Thursday) there will be bidding for IREDA...and, I am assuming it will receive fine bids and coupon will be in the range of 7.65-7.75%," the dealer quoted above said.
Thursday, Indian Renewable Energy Development Agency plans to raise up to INR 5 billion through perpetual bonds. Aditya Birla Capital Ltd. has also invited bids to raise INR 40.0 billion through issuance of bonds maturing on Sept. 11, 2035. Piramal Finance will also raise plans to raise up to INR 7.50 billion by issuing bonds maturing on Aug. 11, 2028. Hdb Financial Services Ltd., IIFL Samasta Finance Ltd., and Muthoot Microfin Ltd. also plan to raise funds from the corporate bond market through their respective bonds.
In the secondary market, deals aggregating INR 134.09 billion were recorded on the National Stock Exchange and BSE combined Wednesday, significantly higher than INR 105.77 billion on Tuesday. Mutual funds and banks were active across tenures, on both buying and selling side, dealers said. Banks and insurance companies bought shorter-tenure bonds, while corporates and pensions were largely absent from the market.
Papers issued by Rural Electrification Corp., Vedika Credit Capital Ltd., Krazybee Services Pvt. Ltd., Akara Capital Advisors Pvt Ltd., Anand Rathi Global Finance Ltd., Keertana Finserv Pvt Ltd., The Andhra Pradesh Mineral Development Corp. Ltd., Muthoottu Mini Financiers Ltd., Cholamandalam Investment And Fin. Co. Ltd., Power Finance Corp. Ltd., and Sammaan Capital Ltd. were traded the most Wednesday.
BENCHMARK LEVELS FOR CORPORATE BONDS:
| Tenure | WEDNESDAY | TUESDAY |
| Three-year | 6.85-6.88% | 6.86-6.89% |
| Five-year | 6.99-7.01% | 6.99-7.01% |
| 10-year | 7.16-7.19% | 7.18-7.21% |
UDAY BONDS
In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating to INR 32.0 million were traded at a weighted average yield of 6.6018-7.0543%, according to data from the RBI's Negotiated Dealing System-Order Matching System Wednesday.
* INR 13.0 million of Tamil Nadu's 7.75%, 2028 bond was dealt at a weighted average yield of 6.6018%
* INR 9.20 million of Uttar Pradesh's 8.77%, 2031 bond was dealt at a weighted average yield of 6.998%
* INR 7.00 million of Telangana's 7.96%, 2032 bond was dealt at a weighted average yield of 7.0543%
* INR 2.80 million of Tamil Nadu's 7.75%, 2031 bond was dealt at a weighted average yield of 6.9978%
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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