New Delhi [India], August 26 : States and Union Territories mobilized Rs 28,892 crore through the auction of State Government Securities (SGS) on Tuesday, according to the Reserve Bank of India (RBI). However, the total notified amount for the auction was Rs 34,150 crore, but bids worth nearly Rs 5,258 crore were not accepted.
RBI's auction results showed major contributions from states like Madhya Pradesh, Rajasthan, Kerala, and West Bengal, while Maharashtra refrained from accepting any bids in its four proposed issuances.
Madhya Pradesh raised Rs 4,800 crore through two issuances, of Rs 2,300 crore at a cut-off yield of 7.57 per cent for an 18-year tenor and Rs 2,500 crore at the same yield for a 20-year tenor.
Rajasthan raised Rs 5,000 crore across three securities of Rs 2,000 crore at 7.49 per cent for 10 years, Rs 1,500 crore at 7.57 per cent for 18 years, and Rs 1,500 crore at 7.54 per cent for 28 years, the longest tenor in the auction.
Haryana accepted Rs 2,000 crore in two segments, including a fresh 14-year issuance at 7.52 per cent and a re-issue of 8.44 per cent Haryana SDL 2034 at a price of Rs 106.22 and a yield of 7.4409 per cent. Kerala raised Rs 1,988 crore, with Rs 988.007 crore accepted for 8-year securities at 7.52 per cent and Rs 1,000 crore for 25-year securities at 7.58 per cent.
West Bengal borrowed Rs 3,500 crore, accepting Rs 2,000 crore at 7.77 per cent for 21 years and Rs 1,500 crore at 7.75 per cent for 22 years, among the higher yields in this auction.
However, Maharashtra did not accept any bids in the proposed 4-year, 8-year, 9-year, and 10-year securities.
Tamil Nadu raised Rs 3,000 crore through three tranches of Rs 1,000 crore each in 4-year (6.84 per cent), 6-year (7 per cent), and a re-issue of 2035 bonds at a yield of 7.3112 per cent. Telangana accepted Rs 2,000 crore through longer tenors of 26-year, 28-year, and 30-year securities, all priced at 7.54 per cent.
Other notable borrowers were Gujarat, which raised Rs 2,000 crore at 7.25 per cent for 9 years, while Odisha borrowed Rs 1,000 crore at 7.5 per cent for an 8-year tenor. Punjab accepted Rs 1,500 crore via a re-issue of 2050 bonds at 7.6088 per cent yield.
Smaller states such as Assam, Goa, Himachal Pradesh, and Jammu & Kashmir also participated, with Goa's 12-year security at 7.40 per cent of Rs 100 crore and J&K's 17-year issuance at the highest yield of 7.82 per cent for Ra 300 crore in this auction.
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