Retail trading in high-yield corporate bonds gains momentum
This shows a sharp change in access to corporate debt. While structured financings such as Shapoorji Pallonji (SP) Group bonds have carried ₹1 crore face values and minimum investments of ₹10 crore, investors can now buy bonds of lower-rated companies in much smaller denominations.
Exchange data also point to rising retail activity, with the number of transactions more than doubling to 2.8 million in FY26. In the first quarter, more than a million trades have already been made, and if this pace continues, the number could go up to 4.1 million, according to Vishal Goenka, co-founder, IndiaBonds.
ET BureauYields range from around 9-10% for AA-rated non-bank lenders to more than 13% for BBB-rated issuers. Moneyboxx Finance, rated CRISIL BBB, has a bond with a 10.2% coupon offering yields of around 12%, with a minimum investment of ₹10,000. ReGreen Excel EPC India, rated CARE BBB, offers an 11.5% coupon and 13.5% yield, with a minimum investment of ₹1 lakh.
“As equity markets have flatlined for a couple of years, the need for a balanced portfolio and regular returns is moving retail to corporate bonds,” said Goenka. “This has been further accelerated by regulatory tailwinds like reduction in face value of bonds and also the advent of online bond platforms, which make access easier.”
Real estate-linked issuers also feature prominently among higher-yield offerings. Embassy KSL Realty Ventures, rated Acuite BBB-, offers a 13.4% coupon, although its minimum investment is ₹2.5 crore.
Read more: Defence stocks fire up! Paras Defence, GRSE, other stocks jump up to 10% as govt notifies 6th indigenisation listAt the other end of the spectrum, some like Muthoot Fincorp, rated CRISIL AA, offers yields of around 9.3%, with some higher-rated bonds also available to investors.
“The attraction is particularly strong in A rated and BBB rated entities,” said Venkatakrishnan Srinivasan, managing partner at Rockfort Fincap, a debt advisory firm. “It also offers high-yield bonds of BBB- offering 12-14% or even higher returns.”
