India, June 09 : Two infrastructure linked companies of the Tata Group are preparing to re-enter India’s corporate debt market after a gap of more than 15 months, according to merchant banking sources.
Bankers said the renewed issuance plans come as domestic corporate bond yields have moderated following the Reserve Bank of India’s decision to keep policy rates unchanged, improving sentiment in the fixed income space.
Tata Steel is planning to raise around ₹30 billion through five year bonds, while Tata Projects is considering fundraising of ₹5–10 billion via a mix of three and five year debt instruments.
Market participants noted that both issuers have indicated readiness to their merchant bankers but are waiting for further softening in borrowing costs before finalising timing.
AAA rated two to five year corporate bond yields had recently climbed above 8%, their highest level since 2019, before easing by nearly 50 basis points after the central bank’s policy announcement, LSEG data showed.
Tata Steel, which carries over ₹150 billion in outstanding bonds, has a ₹10 billion maturity scheduled in October. The company last accessed the bond market in February 2025, raising ₹30 billion through five year paper at a 7.65% coupon.
In the same period, AA-rated Tata Projects raised ₹5 billion via six-year bonds priced at an 8.60% coupon.
Neither company has confirmed immediate issuance plans, although bankers expect market conditions to guide the final timing of the deals.