12 Firms To List Commercial Papers On BSE For Rs 8,215 Crore Issue Size
Twelve companies have filed applications with the Bombay Stock Exchange to list their commercial papers on the bourse for a total issue size of Rs 8,215 crore, the exchange said on Monday.
The firms that have made applications include SBI Cards and Payment Services Ltd., Birla Group Holdings Pvt. Ltd., National Housing Bank, Aditya Birla Capital Ltd., Larsen & Toubro Ltd., BASF India Ltd., The Ramco Cements Ltd., Aarti Industries Ltd., HT Media Ltd., GIC Housing Finance Ltd. and Himadri Speciality Chemical Ltd.
After the process, the effective date for listing of commercial papers at the BSE is Dec. 31, the BSE said in a release. "Till date, 50 issuers have done 182 issuances of CPs and have successfully listed commercial papers of Rs 70,210 crore on the BSE. Weighted average yield of these issuances is 6.42 percent with an average tenor of 161 days.”
A 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. Commercial papers are usually issued at a discount from face value and reflect prevailing market interest rates.