4 firms to list CP on BSE for Rs 9,400 crore issue size

Leading stock exchange BSE on Wednesday said four companies, including state-owned SAIL and Manappuram Finance, have filed applications with the bourse to list their commercial papers (CPs) for a total issue size of Rs 9,400 crore.

Steel Authority of India Ltd, Kotak Mahindra Prime Ltd, Manappuram Finance Ltd and JM Financial Products Ltd are the firms that have made applications with the exchange for issue size of Rs 5,200 crore, Rs 4,050 crore, Rs 100 crore and Rs 50 crore, respectively, BSE said in a release.

After the process, the effective date of listing CPs with the exchange will be January 9, it added.

"Till date 68 issuers have done 474 issuances of commercial papers and have successfully listed CPs of Rs 1,52,090 crore on BSE. The weighted average yield of these issuances is 6.12 per cent with an average tenor of 144 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.