The BSE on Tuesday said eight companies have filed applications with the bourse to list their commercial papers for a total issue size of Rs 35,585 crore.
The firms that have made the applications with the stock exchange are Reliance Jio Infocomm, Bajaj Housing Finance, Redington (India), ICICI Securities Primary Dealership, Motilal Oswal Financial Services, Hinduja Leyland Finance, CEAT and ICICI Home Finance Company, the BSE said in a release.
After the process, the effective date for listing of commercial papers (CPs) with the exchange will be January 1, 2020, it added.
The issue size is Rs 29,650 crore for Reliance Jio Infocomm, Rs 3,350 crore for Bajaj Housing Finance, Rs 950 crore for Redington (India) and Rs 700 crore for ICICI Securities Primary Dealership, the exchange said.
Besides, Motilal Oswal Financial Services’ issue size is Rs 600 crore, Hinduja Leyland Finance’s issue size is Rs 235 crore and CEAT and ICICI Home Finance Company made applications for the issue size of Rs 50 crore each.
“Till date, 50 issuers have done 258 issuances of commercial papers and have successfully listed CPs of Rs 1,05,795 crores on the BSE. The weighted average yield of these issuances is 6.09 per cent with an average tenor of 138 days,” the exchange said.
CP 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 borrowing and provides an additional instrument to investors.
Such instruments can be issued for maturities between a minimum of 7 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.(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Source: Business Standard