Four firms to list commercial papers on BSE for issue size of Rs 4,075 cr

Topics BSE | Indian Oil Corp | HDFC

BSE Stock Exchange (Photo- Bloomberg)

The BSE on Monday said Housing Development Finance Corporation, Indian Oil Corporation, Axis Finance, and GIC Housing Finance have made applications to list commercial papers for a total issue size of Rs 4,075 crore.

Of this, the issue size for HDFC is Rs 2,000 crore, Rs 1,600 crore for Indian Oil Corporation, Rs 275 crore for Axis Finance and Rs 200 crore for GIC Housing Finance.

The effective date for listing of the commercial paper at the exchange is December 17, the exchange said in a media release.

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 7 days and a maximum of one year from the date of issue. These are usually issued at a discount from face value and reflect prevailing market interest rates.

"Till date, 12 issuers have done 23 issuances of commercial paper and have successfully listed Rs 14,220 crore on BSE. The weighted average yield of these issuances is 5.20 per cent with an average tenor of 98 days," the BSE said.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel