9 firms to list commercial papers on BSE for Rs 10,480 cr issue size

New Delhi, Jan 2 () The BSE on Thursday said nine companies have filed applications with the bourse to list their commercial papers for a total issue size of Rs 10,480 crore.

The firms that have made applications to list their CPs with the stock exchange are Power Grid Corporation of India Ltd, Housing & Urban Development Corporation Ltd, Muthoot Finance Ltd, Axis Finance Ltd, Grasim Industries Ltd, Vardhaman Textiles Ltd, SBI Cards and Payment Services Ltd, Kalpataru Power Transmission Ltd, and Kotak Mahindra Prime Ltd, the BSE said in a release.

After the process, the effective date of listing commercial papers (CPs) with the exchange will be January 3, it added.

"Till date (from November 2019), 56 issuers have done 335 issuances of commercial papers and have successfully listed CPs of Rs 1,21,560 crore on the BSE. The weighted average yield of these issuances is 6.08 per cent with an average tenor of 130 days," the exchange noted.

A 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. AST HRS