e-Auction of Commercial Papers & Bonds

Financejunction has built a platform through which corporates can auction their commercial paper and bond issues through an online auction mode. The multi-bid auction methodology ensures complete transparency for the investors and a better yield discovery for the issuer.

Benefits

Investors

  • Transparency

    in yield negotiation

  • Access

    for smaller investors to quality paper

  • Direct dealing

    with the Issuer

  • Convenient

    online process

Clients

  • Competitive bidding

    and greater participation ensures better yield discovery and therefore greater savings for the client

  • Systematic process

    with four stage bidding methodology, ensures total allocation of CP amount

Role of financejunction

  1. Market making for the Commercial Paper or Bond issue on behalf of client
  2. Registration of the Investors and arrangers with mjunction pre auction
  3. Generation of userid and password and thereby providing it to the respective investors.
  4. Communication to be send to investors over mail for winning any allocation quantity post auction
  5. Generation of auction report for all the stages of auction and forwarding it to the client
  6. Application form to be collected from successful investors post auction and provided to client for final approval

Commercial Paper e-Auction

financejunction successfully conducted the e-Auction of Commercial Paper for a large PSU recently. The total issue size was of Rs 500crore.The auction was carried out in a three stage methodology with four lots (with different maturity date and size) as specified by the client. The auction event saw a large number of investors bidding aggressively to get a chunk of the issue. The benefit was in terms of a very competitive yield discovered through this transparent e-Auction process. The entire issue size was allocated to the lowest bidding investor within minutes of starting the auction.