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Informist, Monday, May. 5, 2025

By Siddhi Chauhan

MUMBAI – Fundraising through short-term debt was down Monday as issuers had met most of their fundraising requirements Friday, which saw several issues, dealers said. Borrowing through commercial paper was INR 59.50 billion, sharply down from INR 143.75 billion Friday. Meanwhile, fundraising through certificates of deposit was INR 10 billion, down from INR 75 billion Friday. 

Indian Oil Corp. Ltd. was the largest CP issuer and it raised INR 30 billion through three-month paper at 6.60%. "They (IOC) have been coming into the market quite aggressively and they might continue to do so because of some other requirements," a dealer at a brokerage firm said, "All the other companies are coming to the market because of rollover needs." 

Other than the oil and gas company, Godrej Consumer Products which was the second largest issuer Monday, raised INR 7.5 billion through a three-month paper at 6.61%. On Friday, Bajaj Finance and Indian Oil Corp. were the largest CP issuers. Bajaj Finance raised INR 25 billion through a one-year paper at 7.04% while Indian Oil Corp. raised the same amount through two papers maturing in three months and two months.

Fundraising through certificates of deposit fell Monday due to lack of demand from banks. On Monday, Indian Bank was the only CD issuer which raised INR 10 billion through a one-year paper at 7.74%. "Indian Bank was also looking to raise funds through a three-month paper but they couldn't do so because they weren't getting the required size," a dealer at a brokerage fund said. "This happened because some mutual funds are still on the borrowing side." 

Lack of aggressive appetite from mutual funds also limited fundraising through the CD market, dealers said. In the upcoming days, market expects fundraising to pick up as some mutual funds may get cash on Thursday from maturing investments, dealers said. On Friday, Bank of Baroda was the largest fundraiser in the CD segment, raising INR 30 billion through a three-month paper at 6.53%. Bank of India raised INR 25 billion through a three-month paper at 6.58%. 

On Monday, rates on three-month papers raised by banks were at 6.53-6.83% similar to the rates Friday. Meanwhile, indicative rates on the three-month papers issued by non-banking financial companies were unchanged from Friday at 6.75-6.95%. Rates on three-month paper issued by manufacturing companies were unchanged Monday at 6.55-6.75%.  

--Primary market

* Indian Oil Corp., L&T Ltd., Godrej Consumer Products, Network18 Media & Investments Ltd., Aditya Birla Housing Finance, ICICI home finance, Sundaram Finance, ICICI Securities and Kotak Securities raised funds through CPs.

* Indian Bank raised funds through CDs.

--Secondary market

* Bank of Baroda's CD maturing Tuesday was traded five times at a weighted average yield of 5.8213%.

* National Bank for Agriculture and Rural Development's CP maturing Tuesday was traded thrice at a weighted average yield of 5.8409%.

Following were the volumes, in INR billion, in the secondary market for short-term debt at 1700 IST, as detailed by the Clearing Corp. of India's F-TRAC platform:

End

Edited by Akul Nishant Akhoury

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