Latest news with #NikhilAggarwal
Business Standard
4 days ago
- Business
- Business Standard
UAE-India CEPA Council Signs MoU with FITT, IIT Delhi to Catalyse Global Pathways for Indian Start-ups
PNN New Delhi [India], August 6: As part of its ongoing Start-up Series Roadshow, the UAE-India CEPA Council (UICC) partnered with the Foundation for Innovation and Technology Transfer (FITT), the industry interface organisation of the Indian Institute of Technology Delhi (IIT Delhi), to host an engagement session aimed at advancing global opportunities for India's next-generation start-ups. The event was held at the IIT Delhi campus, an institution widely regarded as a cornerstone of India's innovation ecosystem. With its research-driven entrepreneurial culture, strong industry linkages, and globally oriented start-up ecosystem, IIT Delhi served as a natural forum for discussions on internationalisation and collaboration. The session opened with a welcome address by Dr. Nikhil Aggarwal, Managing Director of FITT, followed by a keynote speech from Prof. Rangan Banerjee, Director of IIT Delhi. Mr. Ahmed Aljneibi, Director of the UAE-India CEPA Council, also addressed the audience. Attendees were given an exclusive preview of the official UAE-India Start-up Series trailer, which highlighted the programme's core offerings, selection process, and scale-up roadmap. The screening was followed by an engaging open-floor discussion, during which Mr. Aljneibi responded to a wide range of questions from students and founders, covering topics such as sectoral priorities, investor readiness, programme timelines, and cross-border support mechanisms. The session culminated in the signing of a Memorandum of Understanding (MoU) between UICC and FITT. The MoU aims to establish a launchpad for Indian start-ups to connect with the UAE's dynamic innovation ecosystem through the CEPA Start-up Series, a flagship initiative offering tailored access to funding, mentorship, and international growth opportunities. Speaking at the event, Mr Ahmed Aljneibi, Director of the UAE-India CEPA Council, shared his reflections on the importance of the partnership with IIT Delhi. "FITT has played a crucial role in translating research into real-world solutions while nurturing the next generation of innovators. Through this partnership, we are proud to support ambitious founders ready to explore the UAE as a launchpad for global growth. This is an important step in strengthening the entrepreneurial bridge between our two nations." Dr Nikhil Aggarwal, Managing Director of FITT, shared his enthusiasm about the partnership, stating, "This partnership is a timely opportunity to connect IIT Delhi's vibrant start-up network with global platforms like the CEPA Start-up Series. It brings together the right mix of exposure, mentorship, and funding opportunities that Indian founders need to thrive in international markets such as the UAE." The event concluded with an interactive walk-through and networking session at the IIT Delhi Research and Innovation Park, where participating start-ups had the opportunity to share their ideas and engage directly with the visiting delegation. Applications for the CEPA Start-up Series remain open. Owing to overwhelming interest, the application deadline has been extended to 15 August 2025. Apply now at: For media inquiries or further information, please contact: info@ About the UAE-India CEPA Council The UAE-India CEPA Council (UICC) is a dedicated bilateral platform established to advance trade, investment, and innovation under the UAE-India Comprehensive Economic Partnership Agreement. It facilitates strategic collaborations between businesses, governments, and institutions across both countries to unlock shared economic opportunities. Follow the UAE-India CEPA Council on: LinkedIn Instagram X (formerly Twitter) YouTube About FITT, IIT Delhi The Foundation for Innovation and Technology Transfer (FITT) is the industry interface and innovation arm of the Indian Institute of Technology Delhi. FITT enables technology commercialisation, entrepreneurial incubation, and strategic partnerships across sectors. With a focus on translating research into scalable solutions, FITT plays a key role in shaping India's deep-tech start-up ecosystem and supporting ventures with global ambitions.
Time of India
28-07-2025
- Business
- Time of India
Retail investors start to warm up to corporate bonds post SEBI reforms: Grip's Nikhil Aggarwal
India's fixed income landscape is undergoing a silent transformation. Once dominated by institutions and high-net-worth individuals, the corporate bond market is now beginning to attract the attention of retail investors — thanks in large part to recent regulatory reforms by SEBI. Nikhil Aggarwal, Founder & Group CEO of Grip, explains how measures such as the reduction in minimum ticket sizes, improved transparency, and digital access are driving wider participation. As traditional instruments like FDs lose their edge, retail investors are finally exploring corporate bonds for better yield, safety, and diversification. Edited Excerpts – Q) Historically, how has a rate cut cycle influenced corporate bond issuance in India? 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Story to Hear Undo A) The current decrease in interest rates is increasing the appeal of bond issuances for government entities and companies to raise debt. Corporates are increasingly turning to the bond market, with a higher preference for short-term bonds, as banks have been slow in passing on previous rate cuts. Bonds Corner Powered By Indian rupee, bond markets cautious in week dominated by Fed, tariffs This week, the Indian rupee and government bonds are set to respond to various factors. These include the U.S. Federal Reserve's policy decision and the August 1 tariff deadline. Traders are likely to be cautious. Investors will closely monitor Fed Chair Powell's comments. Data on the U.S. labor market and inflation will also be key. EM debt hedge funds play safe amid rally Retail investors start to warm up to corporate bonds post SEBI reforms: Grip's Nikhil Aggarwal India's ESG bond market picks up as global and domestic push align: Vineet Agrawal of Jiraaf 10 year yield spikes amid a decline in bets on August rate cut Browse all Bonds News with According to a primary database, corporations issued ₹61,200 crore in in up to five-year bonds in May 2025, which is about three times the amount of money raised for the same period in May 2024. Live Events Historically, periods of declining interest rates in India have seen a surge in bond issuances. For instance, in 2020-2021, when RBI cut rates aggressively, corporate bond issuances rose to record levels as issuers locked in lower borrowing costs. According to statistics from Prime Database, Indian companies raised ₹987 Bn ($11.68 billion) through bond sales in April 2025, attracted by the relative comfort of the local markets and alluring interest rates. That was the highest on record for the first month of a financial year. The market broadly anticipates that the Reserve Bank of India (RBI) will reduce policy rates further in the coming months, as inflation remains contained. Bond issuance is anticipated to be further stimulated by lower rates, which will also increase the value of existing bonds with greater yields, thereby benefiting investors through capital appreciation. Q) With rate cuts expected, do you foresee a significant uptick in corporate bond issuance in the coming quarters? A) Corporate bond issuance in India is expected to see a significant increase in the coming quarters, driven by a series of recent and anticipated rate cuts by the RBI. In its continuous attempts to boost economic recovery and revive credit demand, the RBI has enacted a number of repo rate cuts in 2025, including a 25-basis point cut in April that brought the rate down to 6.00%, following an earlier cut in February. This is lowering the borrowing costs for companies. As inflation cools and monetary policy turns accommodative, more corporates are tapping the bond market to refinance existing high-cost debt, fund capex and working capital needs. In FY25, companies raised over ₹9.9 Trillion through corporate bonds, reaching a record high. Furthermore, with strong liquidity and investor interest for higher-yielding products, market circumstances may be quite supportive of increased primary bond activity in the coming quarters. Q) There's been a pick-up in short-term corporate bond issuance recently. What's driving this trend? A) With the recent interest rate cuts, the short-term secured bonds have grown in popularity among investors. Short-term bonds expiring within five years accounted for more than half of the new bond-securitised debt issued in May, up from one-third in April.5 Following factors can be attributed driving this trend: a. Rate cut anticipation: Companies are opting for shorter maturity bonds to avoid locking in at current rates in the anticipation of rate cuts when cheaper financing could be available. b. Liquidity Infusion: Since late 2024, the RBI's actions to increase banking system liquidity have primarily benefited non-banking financial companies (NBFCs), allowing them to borrow more through short-term bonds. c. Yield Advantage: Short-term secured bonds now yield much more (up to 80 basis points) than similar government securities, making them appealing to businesses and investors. d. Hedging Against Uncertainty: As the long-term interest rate trajectory and macroeconomic environment remain unpredictable, issuers and investors choose short-term instruments. e. Flexible Funding: Short-term bonds provide for quick refinancing or bridge funding without tying in money for an extended period. Q) Are retail investors showing interest in short-term corporate bonds or is demand largely institutional? A) Till 2023 this market saw limited participation from retail investors with 99.5% of the market being driven by institutional investors. The primary barrier being a minimum investment amount of INR 10 lakhs. While institutional investors still dominate the short-term corporate bond space, retail participation is gradually increasing. Recent regulatory changes by SEBI in 2023 have transformed the fixed income investment landscape, making it far more accessible and attractive for retail investors. Note: Excluding transaction sizes greater than 50L (which could indicatively fall into institutional transactions) Agencies Key enablers include: • Low Minimum Investment Amount: Minimum investment thresholds were significantly reduced, with most listed bonds now accessible for ₹10,000 with some bonds also available at ₹1,000, encouraging broader participation. • Greater Transparency: Issuers are now subject to stricter credit rating and disclosure norms, empowering investors to make well-informed decisions using independent reports. • Secure Settlements: All investments are enabled only via the stock exchange with T+1 settlement in the clients' demat accounts. • Enhanced Liquidity for Clients: Introduction of demat settlements via exchanges has increased liquidity, allowing investors to exit investments more easily. • Tax Incentives: TDS on bonds has been exempted up to ₹10,000 annually per issuer. Q) ESG bond issuance has been rising in India. What's driving the growing popularity of these instruments? What sectors are leading India's ESG bond issuance? A) The green bond market has experienced significant growth in the last several years, with positive year-over-year growth every year since 20118. In 2024, globally, the green bonds market achieves record levels of issuance and outperformed the conventional bond market by close to 2%. In India, the momentum picked up after SEBI issued green bond guidelines in 2017. The Government of India began issuing Sovereign Green Bonds (SGrBs) in FY 2022-23, raising a total of ₹57,697 crore through FY 2024-25. Indian mutual funds, banks, and insurance companies are increasingly integrating ESG considerations into their portfolios, driven by regulatory encouragement and global best practices. Investors are also drawn by the dual promise of measurable social, environmental impact and financial stability provided by SEBI's strict disclosure and verification requirements. Several renewable energy leaders (Azure Power, ReNew, Adani Green, etc.) have issued green bonds, and others are entering the sustainability bond space. The recent introduction of SEBI's ESG and sustainability-linked bond framework is expected to unlock new capital-raising opportunities across a range of sectors. The following categories of issuers are especially well-positioned to benefit from and drive this evolving market: a. Infrastructure and Construction: Companies engaged in large-scale infrastructure projects such as urban transport systems, highways, smart cities, water supply, and sanitation are strong candidates for ESG or sustainability-linked bond issuances. b. Renewable Energy and Clean Technology: Firms operating in solar, wind, hydro, bioenergy, energy storage, and electric mobility stand to benefit the most. These sectors directly contribute to India's Nationally Determined Contributions (NDCs) and net-zero targets, making them ideal for green bond issuance. c. Affordable Housing, Healthcare, and Social Infrastructure: Issuers involved in building affordable housing, healthcare facilities, sanitation, education infrastructure, and gender-focused programs are natural fits for social bonds and sustainability-linked instruments. d. Financial Services (BFSI): Banks and non-banking financial companies with established ESG policies are well-positioned to issue ESG bonds or serve as intermediaries, channeling funds to underlying green and social projects. e. Large Listed Corporates: Publicly listed companies already complying with SEBI's Business Responsibility and Sustainability Reporting (BRSR) requirements particularly those in the top 1,000 listed entities are better equipped to meet the data, disclosure, and governance demands of ESG bonds.
News18
23-07-2025
- Business
- News18
Grip Invest launches auto compounding investment product for bond investors
Last Updated: New Delhi, Jul 23 (PTI) Grip Invest, a technology-driven trading platform for fixed-income schemes, on Wednesday announced the launch of a reinvestment product, which enables investors tap into fixed returns assets like bonds and securitised debt instruments (SDIs). The product, Infinite, is designed to solve the pain point of reinvestment in fixed returns instruments, as per a statement. Highlighting the challenges of bonds investors, Nikhil Aggarwal, Founder and Group CEO, Grip, said such investors had to resort to manual tracking of interest payouts and reinvestment options, where they had to make one decision after another, just to keep their capital working. Moreover, he noted that the reinvestment journey is fragmented and inefficient, especially for smaller returns earned by retail investors, which often sit idle. This friction not only disrupts compounding but also results in silent value erosion over time. 'Infinite is our response to that bottleneck: By routing monthly bond payouts into curated mutual funds via an auto-SIP… For investors, it delivers up to 30 per cent more returns from the same portfolio," he said here. Grip Invest, which is backed by investors like Venture Highway, Stride Ventures, ITI Capital and Multiply Ventures, has more than 35,000 customers with an average age of 30-45 years. Aggarwal has seen an increase in interest of retails investors towards the bond market over the past few years, although there remains huge room for further expansion. He attributed the rising interest to markets regulator Sebi's move of significantly reducing the ticket size or face value of debt securities from Rs 1 lakh to Rs 10,000 as well as recent rate cuts by the Reserve Bank of India, which made fixed deposit less appealing for investors. PTI SP TRB (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: July 23, 2025, 15:45 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
10-07-2025
- Business
- Mint
Bond appetite: Corporate debt issuances on track to shatter another record
Corporate bond issuances are expected to scale another record in the ongoing fiscal as Indian companies continue to raise funds at cheaper costs from the debt market, when banks are taking long to fully pass on lower policy rates to businesses. Local companies are expected to raise over ₹11 trillion from the bond markets in 2025-26 financial year, according to sector compares with ₹9.95 trillion raised through public and private debt issues combined in FY25, according to the market regulator's data, implying an estimated annual rise of about 10.5% this fiscal. 'With the faster transmission of recent rate cuts in the debt capital market compared to bank lending rates, corporates have preferred to raise funds via bonds rather than borrow from banks," said Sachin Sachdeva, vice-president and sector head, financial sector ratings at Icra Ltd. This is also reflected in the muted incremental credit expansion by banks in Q1 of FY26, he said. The Monetary Policy Committee of the Reserve Bank of India cut the repo rate by 25 basis points (bps) each in February and April. A 50 bps cut in June followed, leading to a 100 bps drop in the benchmark rate in five months. The RBI also injected liquidity by reducing the cash reserve ratio—the portion of deposits that lenders have to park with the regulator—by 1 percentage point. The bond market has quickly reacted, making it a more cost-effective and flexible option for large, rated borrowings, according to experts. The benchmark 10-year government bond yield fell by 37.6 basis points from 6.700% on 31 January to 6.324% on 30 June. By comparison, RBI data shows, banks' one-year marginal cost of funds-based lending rate—an internal benchmark that tracks deposit rates—fell by 10 basis points to 8.90% during the period. 'This interest rate arbitrage is making bond issuances significantly more attractive," said Nikhil Aggarwal, founder and group chief execuitve officer of Grip Invest, a platform for high-yield, fixed-income investments. 'A softer rate cycle, refinancing requirements and capex plans are converging to drive issuance volumes. If the current momentum continues, ₹12.5 trillion is within reach." Icra's Sachdeva expects overall bond issuances in FY26 to be in the range of ₹10.7 to ₹11.3 trillion. Outlook strong The trend so far this fiscal year mirrors the optimistic outlook. Data by the Securities and Exchange Board of India (Sebi) shows 341 issues worth ₹1.86 trillion in April and May. According to Prime Database, 165 offers amounting to around ₹0.93 trillion were recorded in June (Sebi data for June has not been released yet). This means Indian companies raised ₹2.79 trillion through 506 private bond placements in the April-June first quarter of FY26. According to Sebi data, companies raised ₹1.56 trillion via bonds in the corresponding period of FY25. According to the Prime Database, some of the AAA-rated 3-year bonds issued in June 2025 include: Bajaj Housing Finance Ltd with a coupon rate of 7.02% per annum; L&T Finance Ltd with a coupon rate of 7.23% per annum; and the National Bank for Agriculture & Rural Development (NABARD) with a coupon rate of 7.48% per annum. By comparison, banks' MCLR stood at 8.9% in June. Their loans to industries—micro, small, medium and large—grew 4.8% year-on-year in May, showed the latest RBI data. But bank credit to large industries grew 1% during the period. To be sure, private placements continue to dominate corporate bond offers, with public issues contributing a fraction. Sebi data shows 45 public bond offers raised ₹0.19 trillion in FY24and 43 such issuances raised around ₹0.08 trillion in FY25. Underdeveloped market India's corporate bond market remains underdeveloped, accounting for just 18% of gross domestic product, far below the 70–100% seen in developed economies, said Aggarwal of Grip Invest. According to the Economic Survey FY25, the corporate bond market is 80% of GDP in Korea and 36% in China. Published in January, the report pointed out that the market for corporate bonds comprises high-end bonds, with 97% of corporate bond issuances concentrated in the top 3 rating categories (AAA, AA+ and AA). Moreover, issuances could moderate in the second half of the financial year as RBI will consider incoming data on growth and inflation to decide on the repo rate trajectory, said Aditi Mittal, co-founder of bond investment platform IndiaBonds. However, due to RBI's pause on rate cuts and global market uncertainties, demand-supply dynamics remain supportive, she said. 'If current momentum sustains, ₹12 trillion is certainly achievable. However, a more conservative and realistic estimate would be in the range of ₹11-11.5 trillion," said Mittal. While RBI's 100 bps repo rate cut and CRR reduction have lowered borrowing costs, strong institutional demand from mutual funds, insurers and pension funds is deepening the market, according to Mittal. 'With global macro risks still looming, corporates are locking in rates early, especially for refinancing or pre-emptive capex funding," she said. 'Sharp declines in short-term yields have also made one- to three-year bonds highly attractive, driving strong issuer participation."
Mint
27-06-2025
- Business
- Mint
L&T's ESG bond debut may open India's sustainable debt market—if investors stay interested
Mumbai: On 23 June, infrastructure giant Larsen & Toubro (L&T) listed India's first environmental, social & governance (ESG) bond on the National Stock Exchange under Sebi's new framework. While Indian companies have previously raised ESG debt overseas, L&T's rupee-denominated issuance is a domestic first under Sebi's guidelines. Experts believe the ₹750 million sustainability-linked bond (SLB), anchored by HSBC and offering a 6.35% coupon (competitive by market standards) suggests that investors are willing to back credible ESG-labelled issuances. But whether this debut sparks a broader trend or remains an isolated milestone hinges on a critical factor: investors' willingness to pay the 'greenium" – the difference between the yield or returns investors receive from a green bond versus a similar conventional bond. 'The primary factor will be investor interest and their willingness to offer a green or ESG premium to the bond issue compared to other fixed-income instruments," said Bose Varghese, senior director-ESG at Cyril Amarchand Mangaldas. 'Demand for rupee-denominated ESG bonds has been lukewarm because of the issuers' expectation of a 'green premium' and investors' lack of interest to offer that. But L&T has done it. We can expect more to follow", he said. Global vs local demand Globally, ESG-labelled instruments from Indian companies have seen strong demand. In 2015, Exim Bank issued a $500-million green bond, followed by Axis Bank in 2016. But in India, listed green bond issuance, including municipal bonds, stood at just ₹6,953 crore as of March 2025, according to Sebi data collated by ICRA ESG Ratings Ltd. According to data cited by Nikhil Aggarwal, CEO of investment platform Grip Invest, green bonds outperformed conventional bonds by nearly 2% in 2024. 'The positive response from institutional investors highlights strong demand, which will be critical for future issuances," said Aggarwal. R. Shankar Raman,president, whole-time director & chief financial officer (CFO) at L&T, told Mint the company aims to encourage responsible finance as a strategic pillar. 'We received interest from reputed investors and arrangers who were aligned with the ESG theme. The issuance also enabled us to secure beneficial pricing, reflecting the positive market sentiment toward credible sustainability-linked offerings," he said. Data from Prime Database showed thatIndia's green bond market saw 27 issues totalling ₹8,743 crore between FY21 and FY25. The highest was in FY22, when ₹2,677 crore was raised across 10 issues. Only two issues, worth ₹700 crore, have been recorded so far in FY26. Sebi's ESG bond framework Sebi's 5 June circular introduced a framework covering green, social, sustainability, and sustainability-linked bonds. It mandated KPI-linked disclosures and third-party verification. 'While the framework is robust, its effectiveness will depend on the independence and reputation of the third party hired," said Varghese. 'L&T has long-standing sustainability targets, including carbon and water neutrality," said Heena Khushalani, partner, climate change and sustainability services, EY India. 'For a company with strong internal momentum on ESG and measurable long-term targets, this instrument is flexible and a logical step," she added. Khushalani also pointed out that SLBs often include coupon rate adjustments based on the achievement of sustainability targets. 'If attractive coupon rates—like the 6.35% in L&T's case—become a trend, it'll incentivise more issuers," she said. To be clear, among green bonds with a three-year tenure, Avaada Solaris and Clean Sustainable Energy offer a 6.75% coupon rate, according to data from Prime Database. Still, a shortage of qualified reviewers in India could delay issuances. 'This could create bottlenecks in timely issuance and validation," Aggarwal warned. Khushalani said, 'Sebi, NSE, or platforms like GIFT City could jointly issue guidelines or empanel competent verifiers to mitigate greenwashing risks." The push for sustainable finance is likely to grow, especially among large firms with net-zero commitments. Experts said the Sebi framework has brought regulatory clarity and boosted investor confidence. 'As successful examples emerge, more corporates are likely to explore ESG bonds, not just as a funding tool but as a strategic instrument to align with global investor expectations," said L. Shivakumar, CEO of ICRA ESG Ratings Ltd. Shivakumar also highlighted India's proposed draft climate finance taxonomy, aimed at bringing consistency to ESG disclosures by aligning them with global standards. 'It will provide a structured classification system that enables better comparability and tracking of outcomes," he added. Smaller firms could struggle Despite policy momentum, experts said smaller firms could struggle to participate in the ESG debt market owing to high compliance costs, limited visibility, and weaker secondary-market liquidity. 'So far we have seen only large, reputed Indian corporations issuing ESG-labelled bonds," said Varghese. 'For smaller companies with smaller fund requirements, issuance costs may prove significant." Indian Renewable Energy Development Agency Limited issued a 10-year bond for ₹590 crore in 2019 and Dme Development Limited issued a 10-year bond for ₹775 crore in 2024. An analyst at a rating agency said, 'The real test will be how effectively Sebi ensures enforcement and prevents greenwashing. Without that, the credibility of the entire market is at stake."
