As many as 12 companies, including Larsen & Toubro, SBI Cards and Payment Services, have filed applications with the Bombay Stock Exchange (BSE) to list their commercial papers on the bourse for a total issue size of Rs 8,215 crore.
"SBI Cards and Payment Services Limited, Birla Group Holdings Private Limited, National Housing Bank, Aditya Birla Capital Limited, Larsen & Toubro Limited, SBI Cards and Payment Services Limited (Further Listing), BASF India Limited, The Ramco Cements Limited, Aarti Industries Limited, HT Media Limited, GIC Housing Finance Limited, Himadri Speciality Chemical Limited Companies made an application to list commercial paper at BSE for total issue size of Rs 8,215 crore," the Asia's oldest exchange said in a statement.
Commercial paper is an unsecured, short-term debt instrument issued in the form of promissory notes by a company to meet its short-term borrowings. Maturities on commercial paper range between a minimum of 7 days and a maximum of one year from the date of issue.
Till date 50 issuers have done 182 issuances of commercial papers (CPs) and have successfully listed CPs of Rs 70,210 crore on BSE. The weighted average yield of these issuances is 6.42 per cent with an average tenor of 161 days.
In November, Indian benchmark indices BSE and National Stock Exchange (NSE) issued a framework for listing of commercial papers, a move aimed at broadening investors' participation in such securities.
BSE said that it is steering its efforts to help India Inc in raising funds. In FY20, BSE's debt platforms have enabled corporate India to list debt instruments worth Rs 3.87 lakh crore ($54.32 billion) as on December 30, 2019. Of this, BSE has successfully raised Rs 2.23 lakh crore ($31.27 billion) with market share of around 60 per cent via BSE BOND platform as on December 27, 2019.
BSE's debt platforms was launched in July 2016 and garnered fund raising of Rs 9.29 lakh crore ($130.24 billion) since inception.
By Chitranjan Kumar