Leading stock exchange BSE on Thursday said eight companies, including Bharat Heavy Electricals Ltd, Housing Development Finance Corporation Ltd (HDFC), Kotak Mahindra Prime Ltd, have filed applications with the exchange to list their commercial papers (CPs).
Tata Steel Ltd, Sterlite Technologies Ltd, Vardhman Special Steels Ltd, Kotak Mahindra Investments Ltd and Tata Steel BSL Ltd are the other companies that filed applications to list their CPs with the exchange.
Post-process, the effective date of listing for CPs at the exchange will be December 27, BSE said in a statement.
A total of 32 issuers have done 74 issuances of CPs and have successfully listed CPs of Rs 27,484 crore on BSE till date. The weighted average yield of these issuances is 5.49 percent with an average tenor of 126 days, the BSE noted.
BHEL, HDFC, Kotak Mahindra Prime, Tata Steel Ltd, Sterlite Technologies, Vardhman Special Steels, Kotak Mahindra Investments and Tata Steel BSL made an application to list commercial paper at BSE for an issue size of Rs 1,150 crore, Rs 1,000 crore, Rs 575 crore, Rs 500 crore, Rs 100 crore, Rs 80 crore, Rs 75 crore and Rs 75 crore, respectively, the exchange said.
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. CPs are usually issued at a discount from face value and reflect prevailing market interest rates.