Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Auro Realty, the real estate arm of Aurobindo Group, is planning to raise INR 20 billion (USD 225.41 million) through bonds to finance key acquisitions, including Hotel Taj Banjara in Hyderabad. The company is offering two-year and four-year bonds with coupon rates ranging from 11% to 15%. The bond issue is in advanced stages and could be completed this month, with private credit funds expected to participate. This move reflects the increasing use of corporate bonds by Indian firms to fund large-scale acquisitions efficiently.
Auro Realty, the residential and real estate division of Aurobindo Group, which also owns pharmaceutical company Aurobindo Pharma, is preparing to raise INR 20 billion (USD 225.41 million) through a bond issuance. The company plans to issue bonds with two-year and four-year tenors, offering coupon rates between 11% and 15%. Advertisement
According to merchant bankers involved in the transaction, the funds are intended for promoter-level financing to acquire certain assets, including the Hotel Taj Banjara in Hyderabad. Private credit funds are expected to participate in the investment, and the bond sale is reportedly in its advanced stages, with completion possible this month.
This issuance highlights a growing trend in India, where companies increasingly rely on the corporate bond market to fund significant acquisitions instead of depending solely on bank loans. Bonds offer flexibility in structuring finance, and the relatively higher coupon rates make them attractive to institutional investors seeking returns above traditional lending rates.
Aurobindo Group did not respond to requests for comment. Analysts point out that such financing strategies allow companies to expand their real estate portfolios while maintaining liquidity. The current bond market environment in India has encouraged firms to raise capital through structured debt for acquisitions, a trend that has been gaining momentum over the past few years.
Source Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
