The company invited bids from investors earlier in the day and received bids from high-net-worth investors, family offices and domestic private credit funds, the bankers said requesting anonymity as they are not authorised to talk to the media.
Private credit fund 360 One Asset has likely arranged the issue, multiple bankers said.
Hinduja Group and 360 One did not immediately respond to Reuters' requests for comment.
Cyqure India, a subsidiary of IndusInd International Holdings (IIHL), part of Hinduja Group Holding Company offered a yield of 14.5%, according to a term sheet seen be Reuters.
The coupon will rise by 100 basis points if the credit rating slips a notch, the term sheet showed.
Careedge Ratings has assigned a BBB- provisional rating to these notes. The proceeds of the Cyqure India bond issue will be used to acquire 25.05% stake in Reliance General Insurance and 26% in Reliance Nippon Life Insurance, Careedge said.
These insurance companies, a part of Reliance Capital, are in the process of being acquired by IIHL, a Hinduja Group Holding Company.
The Reserve Bank of India took over Reliance Capital in 2021 due to governance concerns at the non-bank lender after it failed to meet its payment obligations to creditors.
In February, IIHL, won the bid under the National Company Law Tribunal of India to acquire Reliance Capital.
In case IIHL fails to procure a foreign portfolio investor registration within three months from the date of allotment, the coupon will be stepped up by 200 bps. Following the fulfilment of the condition, it will get stepped down by the similar size.
Separately, Hinduja Group is also considering a private placement of a second tranche of bond issue to raise around 43 billion rupees in coming weeks, bankers said. The final details of this issue are still getting firmed up.
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