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Tata Housing Development and Tata Realty and Infrastructure (TRIL), two subsidiaries of Tata Sons, are planning to raise up to ₹29 billion ($330 million) through short-term bond sales. The move comes as both companies look to tap the corporate debt market after a gap of over a year. The issuance is expected to be completed by end of this year. So, should you buy the bonds? Let's see. Of the total amount, Tata Housing is expected to raise around ₹19 billion while TRIL will be looking at an issue worth ₹10 billion. The duration of these bond issuances is still being finalized but is likely to be between two and five years. This comes after Tata Housing had issued three-year bonds at 8.05% in October 2024, and TRIL had done similar maturity papers at 8.15% in June 2024. Tata Housing's bonds are rated AA by Care Ratings, while TRIL's notes have a higher rating of AA+. These ratings take into account TRIL's diversified portfolio that includes real estate and other infrastructure segments like roads, ropeways, and metro. Tata Housing also gets its strength from the parent company as well as its strategic importance to the group as the flagship firm managing real estate business.
