MUMBAI: Two subsidiaries of India’s Tata Sons, operating in the real estate and infrastructure segments, are set to raise as much as 29 billion rupees ($330 million) through short-term debt sale over the next two months, two merchant bankers said on Monday.
Tata Housing Development could raise around 19 billion rupees, while Tata Realty and Infrastructure (TRIL) could come up with an issue to raise 10 billion rupees, the bankers said.
“Both the companies should complete the issuance before December-end. The tenor is being finalised, but should be in the range of two years to five years,” one of the bankers said.
The companies did not respond to a Reuters request for comment, while the bankers requested anonymity as they are not authorised to speak to media.
Both firms would be tapping the corporate debt market after more than a year. Tata Housing, a wholly owned subsidiary of TRIL, had issued three-year bonds at 8.05% in October 2024, and its parent, a wholly owned subsidiary of Tata Sons, had issued similar maturity papers at 8.15% in June 2024.
Tata Housing’s bonds are rated AA by Care Ratings, while TRIL’s notes are rated a notch higher at AA+.
The ratings factored in TRIL’s diversified portfolio, includes a presence in real estate and other infrastructure segments such as roads, ropeways, and metro, while Tata Housing derives strength from parent, TRIL, and its strategic importance to the group as the flagship company managing real estate business, Care said in a note.
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