9 firms to list commercial papers on BSE for Rs 6,100 cr issue size

Leading stock exchange BSE on Monday said nine companies have filed applications with the bourse to list their commercial papers (CPs) for a total issue size of Rs 6,100 crore.

REC Ltd, Aditya Birla Fashion and Retail Ltd, SBI Cards and Payment Services Ltd, Axis Finance Ltd, Redington (India) Ltd, Motilal Oswal Home Finance Ltd, Avenue Supermarts Ltd, Hinduja Leyland Finance Ltd and Mahindra Rural Housing Finance Ltd are the firms that have made application to list CPs with the exchange, BSE said in a release.

After the process, the effective date of listing CPs with the exchange will be January 7, it added.

"Till date 64 issuers have done 405 issuances of commercial papers and have successfully listed CPs of Rs 1,34,845 crore on BSE. The weighted average yield of these issuances is 6.13 per cent with an average tenor of 132 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.