MUMBAI, May 7: A host of blue-chip corporates and finance companies have made a beeline to raise resources through issue of commercial papers and other debt instruments to take advantage of the sharp fall in short term interest rates.

Two leading credit rating agencies - Credit Analysis & Research Ltd (Care) and Credit Rating and Information Services of India Ltd (Crisil) - have rated commercial papers worth over Rs 250 crore this week.

Corporates planning to raise money through the commercial paper route include Infrastructure Leasing & Financial Services Ltd (ILFS), BOC India, Dabur, Gujrat Ambuja, Electrosteel Cating, NRB Bearings, Singer Ltd and Anagram Finance Ltd and Blue Star Ltd.

Gujarat Ambuja tops the list with an issue size of Rs 90 crore followed by ILFS (Rs 75 crore), Anagram India (Rs 25 crore), Electro Steel (Rs 20 crore), Blue Star (Rs 11 crore), BOC India (Rs 10 crore), and Singer India and NRB Bearing (Rs 4 crore each).

Kotak Mahindra Finance Ltd will enter the debt market with a Rs 75 crore issue. The issue has been rated with a AA+ which indicated high safety with regard to timely payment of interest and principal.

According to Crisil, the rating reflects the strengths Kotak Mahindra Finance derives from diversity of business, funding mix and majority shareholding in Kotak Mahindra Primus and Kotak Mahindra Capital Company where it has partnership with internationally renowned companies.

Crisil has rated the Rs 25 crore commercial paper programme of Anagram Finance with a P1+. Anagram posted a 48 per cent jump in total income in the first half of 1996-97 over last year. The post tax spreads have declined marginally to 4.98 per cent in the first half of 1996-97 from 5.5 per cent posted during the same period in the previous year.

The commercial paper issues of both ILFS and Blue Star have received PR1+ rating from Care. The PR1 rating indicates `superior' quality of the paper while the plus (+) sign shows the relative position within the band covered by the rating symbol.

The rating agency has assigned BBB rating to the Rs 10 crore worth of non-convertible debenture issue of International Aluminium Products. Crisil has rated the fixed deposit programme of BOC India with a FAA+ while the Rs 10 crore commercial paper programme has been rated with a P1+.

According to the rating agency, BOC's financial performance in 1995-96 depicted a marginal decline in profitability, increase in gearing and consequent decrease in coverage ratios.

Dabur India has been rated with a P1+ rating for its commercial paper.

The company, engaged in manufacturing and sale of ayurvedic and over the counter medicines, toiletries food products, ethical allopathic medicines and bulk drugs has posted a growth in sales to the tune of 39 per cent to Rs 532.27 crore in 1995-96 from Rs 382.29 crore in 1994-95.

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