Informist, Thursday, Aug 31, 2023
By Asmita Patil
MUMBAI – Fundraising by commercial papers fell today due to lack of big ticket issuances by companies, dealers said. So far in the day, financial institutions have raised 13.75 bln rupees through CPs, as compared to 16.50 bln rupees on Wednesday.
Manufacturing companies dominated primary market segment of short-term debt today. Reliance Retail Ventures and Larsen & Toubro raised 8.75 bln rupees through papers maturing in three months at 7.08% and 7.02% rate respectively.
On Wednesday, Larsen & Toubro had raised around 11 bln rupees through papers maturing in three months at a coupon of 7.02%.
Rates on short-term papers remained steady amid adequate demand from mutual fund houses for these papers. Rates on three-month CPs issued by non-banking financial companies were quoted at 7.20-7.40%, and rates on papers of manufacturing companies were 7.10-7.30%.
There is steady inflow into liquid funds of mutual funds, which they are deploying in short-term papers. They are also reinvesting the funds received from maturity of short-term papers.
Rates on three-month certificates of deposit were quoted at 7.00-7.20%. Axis Bank raised 4 bln rupees through CDs maturing in 1-year at 7.50% rate.
–Primary market
* Kotak Securities, Larsen & Toubro, and Reliance Retail Ventures raised funds through CPs.
* Axis Bank raised funds through CDs.
–Secondary market
* Indian Bank’s CD maturing on Oct 25 was dealt twice at a weighted average yield of 7.0503%.
* Small Industries Development Bank of India’s CP maturing on Feb 15, 2024 was dealt twice at a weighted average yield of 7.2600%.
At 1645 IST, 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:
NOTE: Details of the deals have been received from market sources.
End
Edited by Vidhi Verma
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