Business · India Bureau
Indian firms shelve ₹94,500 crore in bond plans amid yield row
Corporate India has withdrawn nearly ₹95,000 crore in planned bond issuances as investor demands for higher yields clash with issuers' pricing expectations. The pullback reflects growing market tensions over valuations in the debt capital markets.
LSN India ·
Indian corporates have shelved approximately ₹94,500 crore in bond issuance plans, signalling a significant widening between what investors are willing to pay and what companies are prepared to accept, according to market data analysed by Datanomics.
The withdrawal reflects a fundamental mismatch in yield expectations, with debt investors demanding higher returns while issuers have resisted increasing their coupon offerings. This divergence has forced several major borrowers to postpone their market access plans, hoping for a more favourable window to raise funds.
Among the largest withdrawals are development finance institutions and public sector undertakings, including NABARD, Power Finance Corporation (PFC), Small Industries Development Bank of India (SIDBI), and Indian Oil Corporation (IOC). The pullback underscores the challenge facing both established and emerging borrowers in the current market environment.
The bond market slowdown comes as investor sentiment remains cautious, with institutions reassessing their risk appetite amid broader economic uncertainties. The pricing gap suggests market participants are taking a more discerning approach to credit quality and returns, making it difficult for issuers to raise capital at their desired terms.
Analysts expect the standoff to persist until either market conditions shift or companies adjust their pricing expectations to align with prevailing investor demand.