MUMBAI: Auro Realty, the real estate division of Aurobindo Group, which also includes pharmaceutical producer Aurobindo Pharma, aims to raise ₹20 billion (approximately $225.41 million) via bond sales to finance a significant acquisition, according to two merchant bankers on Tuesday.
The company plans to issue two-year and four-year bonds with coupon rates between 11% and 15%, the bankers noted.
“This financing at the promoter level is intended for the acquisition of several assets, including Hotel Taj Banjara Hyderabad,” commented one of the bankers.
The Auro Realty group has not responded to a Reuters email for further information, and the bankers, who requested anonymity, are not permitted to speak to the media.
Auro Realty’s bond issuance is at an advanced stage and could finalize as soon as this month, with private credit funds likely to be the prospective investors, the bankers added. This move aligns with the growing trend of companies utilizing the corporate bond market to support large acquisitions.
