Tycoon Shapoor Mistry's firm set to sell India's biggest low-rated bond

By Divya Patil

An Indian property firm is set to sell the country’s biggest ever low-grade local-currency bond next week, a rare offering in a market dominated by corporate debt with top credit ratings.
 

Goswami Infratech Pvt., a Shapoorji Pallonji group company controlled by billionaire Shapoor Mistry, is seeking bids on Monday for notes due in April 2026 to raise as much as Rs 143, 00 crore ($1.7 billion), according to people familiar with the matter. The planned zero-coupon bond is rated BBB- by Care Ratings and carries a yield of 18.75%, said the people who requested anonymity discussing private matters. 

A Shapoorji Pallonji Group’s spokesperson didn’t immediately reply to an email seeking comment. 

The offering comes at a time when investors are turning bullish on India’s credit market as a strong economy and improved corporate balance sheets have alleviated concerns about repayment risks. Also aiding sentiment is an Indian central bank that has joined most global peers in pausing interest-rate hikes as inflation eases. 

Goswami Infratech, which invests in real estate, is a joint venture between SC Finance Investments Pvt. and SP Finance Pvt., which are both controlled by the Mistry family.