Informist, Thursday, Nov 16, 2023
By Sony
MUMBAI – After raising heavily on Wednesday, fundraising through commercial papers fell slightly today with only a few big ticket issuances, dealers said.
“There were fewer renewals, not a lot of companies needed cash today,” a dealer with a mid-sized brokerage firm said.
So far today, financial institutions have raised 37 bln rupees through CPs, against 64.75 bln rupees on Wednesday. Tata Steel was the major issuer, raising 20 bln rupees through papers maturing in three months at 7.40%.
On Wednesday, Birla Group Holdings was the major issuer, raising 12 bln rupees through papers maturing in three months at 7.95%.
Rates on short-term debt papers remained flat today as small issuances were absorbed easily by robust demand from mutual funds, dealers said.
Rates on three-month CPs issued by non-banking finance companies were quoted at 7.75-7.95%. Rates on papers of similar maturity issued by manufacturing companies were quoted at 7.35-7.55%.
Rates on three-month certificates of deposit were quoted at 7.25-7.45%. Punjab National Bank and Indian Bank raised 15 bln rupees each through CDs at 7.29% and 7.26%, respectively.
–Primary market
* Tata Motors Finance, Hero Fincorp, Tata Steel, Aditya Birla Finance, and Godrej Industries raised funds through CPs.
* Punjab National Bank, and Indian Bank raised funds through CDs.
–Secondary market
* ICICI Bank’s CD maturing on Sep 27 was dealt six times at a weighted average yield of 7.6500%.
* ICICI Securities’s CP maturing on Friday was dealt four times at a weighted average yield of 6.8268%
At 1700 IST, the following were the volumes, in bln rupees, in the secondary market for short-term debt, as detailed by the Clearing Corp of India’s F-TRAC platform:
End
Edited by Aditya Sakorkar
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