The flagship of billionaire Kumar Mangalam Birla is set to raise Rs 101 billion ($117 million) to sell bonds over five years, according to those familiar with the issue. The memo has a 6.56% coupon, they said.
The aggressive cash injections and two interest rate cuts by the Reserve Bank of India have led to bond gatherings, bringing the highest valuation of three- and five-year corporate debt to the lowest levels since 2022.
Other companies are also taking advantage of the lower borrowing costs by using the local bond market. Jio Credit Ltd., a shadow lender owned by Mukesh Ambani, Asia’s wealthiest businessman, is set to seek a bid next week to raise three years of money with a 7.08% coupon. That’s 11 basis points lower than a similar tenor deal last week.
Axis Bank Ltd. is Grasim’s only arranger, people said. Company representatives declined to comment.
