JSW Steel, Aditya Birla Finance, Three Others To List Commercial Papers On BSE
With this, the number of companies listing their commercial paper on the BSE BONDS platform will reach 16.
Leading stock exchange BSE on Wednesday said as many as five companies, including JSW Steel Ltd. and Aditya Birla Finance, have made applications to list their commercial papers.
The other companies are KEC International Ltd., Aditya Birla Money, and Fullerton India Credit Company.
Post-process, the effective date of listing for the commercial paper at the exchange will be Dec. 19, the BSE said in a statement.
With this, the number of companies listing their commercial paper on the BSE BONDS platform will reach 16 since the stock exchange came out with the framework for listing of such instruments late last month.
The weighted average yield of these issuances is 5.30 percent with an average tenor of 116 days. Also, the funds raised by these firms will reach Rs 17,835 crore.
According to BSE, Aditya Birla Finance, JSW Steel, KEC International, Aditya Birla Money and Fullerton India filed application to list CPs on the BSE for an issue size of Rs 500 crore, Rs 165 crore, Rs 150 crore, Rs 50 crore and Rs 25 crore respectively.
Commercial paper is an unsecured money market instrument issued in the form of promissory notes that enables highly rated corporate borrowers to diversify their sources of short-term borrowings and provides an additional instrument to investors.
Such instruments can be issued for maturities between a minimum of seven days and a maximum of one year from the date of issue. CPs are usually issued at a discount from face value and reflect prevailing market interest rates.