10 firms to list commercial papers on BSE for ₹5,745 crore issue size

Leading stock exchange BSE on Friday (January 10) said 10 companies, including Larsen & Toubro Ltd, Sun Pharmaceutical Industries Ltd and BHEL, have filed applications with the bourse to list their commercial papers (CPs) for a total issue size of ₹5,745 crore.

Larsen & Toubro Ltd, Manappuram Finance Ltd, ECL Finance Ltd, Sun Pharmaceutical Industries Ltd and BHEL have made applications to list CPs for issue size of ₹2,995 crore, ₹775 crore, ₹500 crore, ₹500 crore and ₹450 crore, respectively, the BSE said in a release.

Besides, Redington (India) Ltd, Kotak Mahindra Prime Ltd, Muthoot Homefin (India) Ltd, The Ramco Cements Ltd and IIFL Wealth Finance Ltd have filed applications to list their CPs for issue size of ₹175 crore, ₹140 crore, ₹100 crore, ₹75 crore, and ₹35 crore, respectively.

After the process, the effective date of listing CPs with the exchange will be January 13, it added.

“Till date 77 issuers have done 582 issuances of commercial papers and have successfully listed CPs of ₹1,72,984 crore on BSE. The weighted average yield of these issuances is 6.13% with an average tenor of 149 days,” BSE 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.