Tycoon Shapoor Mistry’s firm set to sell India’s biggest low-rated bond

Shapoorji Pallonji | Source: Wikipedia

Written by Divya Patel

An Indian real estate firm is set to sell the country’s largest low-grade local currency bonds next week, a rare offering in a market dominated by the debt of higher-rated companies.

Goswami Infratech Pvt. , a subsidiary of the Shapoorji Pallonji Group controlled by billionaire Shapoor Mistry, to bid on Monday for a bond due in April 2026 to raise up to 143,00 crore ($1.7 billion), according to people familiar with the matter. The planned zero-coupon bond is rated BBB- by Care Ratings and carries a yield of 18.75%, said the people, who asked not to be identified to discuss private matters.

A spokesperson for the Shapoorji Pallonji Group did not immediately respond to an email seeking comment.

The offer comes at a time when investors are turning bullish in India’s credit market as a strong economy and improving corporate balance sheets have eased concerns about repayment risks. Also helping to support sentiment is India’s central bank, which has joined most of its global peers in temporarily halting interest rate increases as inflation subsides.

Goswami Infratech, which invests in real estate, is a joint venture between SC Finance Investments Pvt. and SP Finance Pvt. , both of which are controlled by the Mistry family.

First published: June 23, 2023 | 12:51 p.m ist