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Informist, Friday, Sept. 19, 2025

By Vaishali Tyagi

MUMBAI – Yields on corporate bonds in the secondary market ended steady Friday as market participants shifted their focus to upcoming issuances in the primary market, dealers said. "For the whole week and even today (Friday), secondary market was more or less dull...however, some mutual funds traded some bonds to have cash to deploy funds in primary market next week. Monday and Tuesday there are good biddings (in terms of volume and issuers)," a fund manager at a big-sized mutual fund said.

Dealers said primary market is gaining traction, with some key issuers raising significant amounts and more expected to follow suit in the coming days. "Many PSU (public sector undertakings) issuers are in line now with a mix of short- and long-term bonds," the fund manager quoted above said.

On Friday, activity in the primary market remained dull. Only two issuers tapped the market to raise funds aggregating to INR 2.25 billion. "Primary market activity was subdued on Friday, with many issuers awaiting large bond issuances from banks and state-owned companies to gauge investor response. Currently, private companies are tapping the market with relatively small issuances. But, it is expected that some PSUs will enter the market next week," a dealer at a brokerage firm said. Dealers expect a surge in corporate bond activity in the second half of the year.

On Monday, bond issuances aggregating INR 118.25 billion are lined up. Assam-based Numaligarh Refinery Ltd. plans to raise up to INR 50 billion through bonds maturing in 10 years. Axis Max Life Insurance Ltd. has also invited bids to raise INR 8.0 billion through issuance of 10-year bonds. Goldman Sachs India Finance Pvt. Ltd. also plans to raise up to INR 3.0 billion by issuing bonds maturing on Sept. 22, 2028. Lodha Developers Ltd., Samunnati Finance Ltd. and Muthoot Microfin Ltd. also plan to raise funds from the corporate bond market.

In the secondary market, deals aggregating INR 118.25 billion were recorded on the National Stock Exchange and BSE combined Friday, significantly higher than INR 84.67 billion on Thursday. 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 pension funds were largely absent from the market.

Papers issued by REC, Vedika Credit Capital Ltd., Indian Railway Finance Corp. Ltd., State Bank of India, Krazybee Services Pvt. Ltd., Akara Capital Advisors Pvt. Ltd., Anand Rathi Global Finance Ltd., Keertana Finserv Pvt. Ltd., Muthoottu Mini Financiers Ltd., Cholamandalam Investment and Finance Co. Ltd., and Power Finance Corp. Ltd. were traded the most Friday.

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating INR 29.00 million were traded at a weighted average yield of 6.6273-7.3986%, according to data from the RBI's Negotiated Dealing System-Order Matching System Friday.

* INR 10.00 million of Tamil Nadu's 7.73%, 2029 bond was dealt at a weighted average yield of 7.3986%

* INR 5.00 million of Uttar Pradesh's 8.38%, 2027 bond was dealt at a weighted average yield of 6.4350%

* INR 5.00 million of Tamil Nadu's 7.74%, 2031 bond was dealt at a weighted average yield of 7.0424%

* INR 5.00 million of Punjab's 8.62%, 2030 bond was dealt at a weighted average yield of 7.2550%

* INR 2.00 million of Jharkhand's 8.38%, 2027 bond was dealt at a weighted average yield of 6.6273%

* INR 2.00 million of Uttar Pradesh's 8.49%, 2028 bond was dealt at a weighted average yield of 7.2678%

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

Edited by Ashish Shirke

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