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Reuters
28-05-2025
- Business
- Reuters
Indian companies rush to sell short-term debt as RBI monetary boost lowers rates
MUMBAI, May 28 (Reuters) - Indian firms have stepped up short-term bond sales with issues worth around 270 billion rupees ($3.2 billion) lined up through Thursday as the Reserve Bank of India's rate cuts and hefty liquidity injections have made these borrowings cheaper. The issuers, which include three large state-run institutions and five big non-bank finance companies, will raise the funds through bonds maturing within five years, merchant bankers said. Overall, Indian firms have raised about $20 billion through private placement of bonds in the financial year that started on April 1. Indian central bank's 50-basis-point rate cuts in 2025 and about $100 billion of cash infusion into the banking system since December have led to a sharper fall in short-term bond yields compared to their long-term peers, prompting a shift in companies' borrowings. Non-bank finance companies typically borrow funds for shorter durations. A widening gap between rates on short-term and long-term bonds benefits them. Market expectations are for another 50 basis points of policy rate cuts, said Vinay Pai, head of fixed income at Equirus Capital, including a move next week. In May, more than half of the debt issuances were in bonds of up to five years, compared to over one-third in April, as per data from information provider Prime Database. Investors are lapping up the bonds as returns are lucrative. "Corporate bonds are gaining traction among diverse investors, including mutual funds, state-run and foreign banks," said Suresh Darak, founder of online bond trading platform Bondbazaar. "With spreads between AAA-rated corporate bonds and government securities exceeding 80 basis points, corporate bonds have become an attractive option." Companies borrowing funds in billion rupees in two sessions: ($1 = 85.3020 Indian rupees)
Entrepreneur
12-05-2025
- Business
- Entrepreneur
Private Equity Surge Signals Strong Investor Appetite in India's Consumer Sector: Equirus Capital
In the first quarter alone, 81 private equity deals were closed, accounting for INR 124 billion in investments; already more than half of the INR 230 billion deployed across all of 2024 You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Private equity activity in India's consumer-facing industries surged by 38 per cent in 2024, driven by rising investor confidence in the country's expanding middle class and increasing domestic consumption. According to a press release by Equirus Capital, the number of PE deals rose from 168 in 2023 to 232 in 2024, reflecting both global and domestic optimism about the long-term growth potential of India's consumption economy. This upward momentum has only intensified in 2025. In the first quarter alone, 81 private equity deals were closed, accounting for INR 124 billion in investments; already more than half of the INR 230 billion deployed across all of 2024. "Deal momentum has continued strongly in 2025," said Bhavesh Shah, head – investment banking, Equirus Capital. "Investor interest has spanned sub-sectors including packaged foods, fashion, online grocery, fresh milk delivery, and personal care." The M&A space is showing similar strength. Merger and acquisition activity in consumer sectors grew 37 per cent year-on-year, with 74 deals completed in 2024 compared to 54 in the previous year. That pace has quickened dramatically this year, with 46 M&A deals already closed in the first three months of 2025, pointing to what could be a record-setting year in dealmaking. "India's transition to a Viksit Bharat, supported by rising income levels and the government's Sabka Saath, Sabka Vikas vision, ensures that consumer sectors are uniquely positioned to benefit from this growth, both structurally and sentimentally," Shah noted. The bullishness is exemplified by recent headline transactions, such as Adani Wilmar's acquisition of G.D. Foods Manufacturing, the company behind the well-known Tops brand of sauces and pickles. This deal highlights how strategic buyers are actively positioning themselves in India's crowded yet fast-growing FMCG market. However, public market activity tells a different story. Despite the private market surge, equity capital raised by consumer-facing companies in Q1 2025 totaled only INR 5 billion. This is a sharp contrast to the INR 422 billion raised in 2024, a year that saw a 121 per cent increase over 2023. Still, the overall trend is clear; private capital is flowing aggressively into sectors aligned with India's consumption-led growth story. "This trend confirms that India's consumer story is firmly in focus for both domestic and global investors," Shah added, framing the sector's momentum as not just cyclical, but part of a larger structural transformation.
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Business Standard
09-05-2025
- Business
- Business Standard
Private equity, M&A drive 3x jump in real estate capital in FY25
Capital raising in India's real estate sector in the financial year 2025 (FY25) tripled to 17 deals raising ₹32,852.6 crore, from five deals raising ₹10,955.4 crore in FY24, according to Equirus Capital, a financial services firm. The sharp uptick was driven by a rise in private equity and M&A activity, both domestic and international, and an increase in average transaction value, the report stated. This boom in capital flows has been observed despite a decline in the secondary market performance of listed real estate stocks across large-, mid-, and small-cap segments—all of which underperformed the Sensex's 7.4 per cent gain over the same period. 'One of the bright spots in the market has been the real estate investment trusts (Reits), which outperformed with a 12.2 per cent return, underscoring their growing appeal,' said Vijay Agrawal, managing director, Equirus Capital. 'India's Reit and infrastructure investment trust (InvIT) markets have evolved from niche investments into core components of the country's real estate and infrastructure financing ecosystem.' Since FY20, cumulative fund mobilisations through Reits and InvITs have crossed ₹1.6 lakh crore, driven by their expanding asset base, robust institutional backing, and growing retail investor participation, the report by Equirus said. In the first month of FY26, the sector witnessed four deals worth $372 million, reflecting sustained investor confidence and appetite for real estate as an asset class, according to the report. The four deals featured Eldeco Group ($176 million), DLF Kolkata IT SEZ ($79 million), SAMHI Hotels ($88 million), and Zillion Hotels & Resorts ($29 million). 'This surge in capital raising highlights the sector's resilience, institutionalisation, and long-term growth potential, making it a focus area for PE funds, strategic investors, and capital market stakeholders alike,' added Agrawal.
