Companies have raised nearly Rs 26,000 crore from the issuance of bonds on the NSE's newly launched electronic book mechanism platform in less than two months.
New Delhi: Companies have raised nearly Rs 26,000 crore from the issuance of bonds on the NSE's newly launched electronic book mechanism platform in less than two months.
The platform NSE-EBP (Electronic Debt Bidding Platform) was launched on July 1, to facilitate online bidding for private placement of debt securities. The rival exchange BSE had also launched the platform -- BSE-BOND -- on the same day.
Since then, companies have raised 25,785 crore through 33 issuances on the NSE's platform.
Five issuers have completed bond issuances above Rs 2,500 crore each on NSE-EBP. Issuers like HDFC, LIC Housing Finance, Tata Power, Indiabulls Housing Finance and Power Grid Corporation of India are using the platform.
"National Stock Exchange (NSE) has emerged as the preferred exchange with 33 issues worth Rs 25,785 crore till August 23, 2016," the exchange said in a statement.
The e-book platform is expected to bring in transparency and efficiency in price discovery for private placement of debt securities.
"We are happy that corporates are able to use NSE - EBP platform to meet their needs. Like in other segments, NSE has emerged as the preferred exchange with around 75 percent market share in this segment too. Going forward, we expect more corporates to use this platform," Mukesh Agarwal Group Head (MF and IPO) at NSE said.
The electronic book mechanism is mandatory for all private placements of debt securities in primary market with an issue size of Rs 500 crore and above, inclusive of green shoe options, if any.
It is optional for issues below Rs 500 crore, but the issuers will have to disclose coupon, yield, amount raised, number of investors and category of investors to the electronic book provider or to the information repository for corporate debt market, in the format as specified by Sebi.