Mumbai (Maharashtra) [India], July 18 (ANI): On Friday, the central government conducted an auction of securities amounting to a total of Rs 27,000 crore (Rs 15,000 crore set to mature in 2030 and Rs 12,000 crore scheduled to mature in 2054).
As per the Reserve Bank of India (RBI), thegovernment securitieswas fully subscribed. The bond maturing in 2030 is expected to provide 6.01 percent annual returns, and 7.09 percent for the bond maturing in 2054.
The subscription auction was carried out using a price-based approach today. Primary Dealers submitted their bids for the auction electronically via the Core Banking Solution (E-Kuber) system between 09:00 AM and 09:30 AM on the day of the underwriting auction (today).
The underwriting commission will be added to the current account of the respective primary dealers with RBI today. Primary dealers are authorized entities with RBI that have permission to buy and sellgovernment securities.
In the most recent auction of State Government Securities (SGS), data from the RBI revealed that up to twelve Indian states managed to raise a combined total of Rs 26,900 crore. Every state that took part in the auction accepted the full amount they had announced for the sale.
Maharashtra took the lead in the fundraising initiative, raising Rs 6,000 crore via four types of securities. The state provided returns of 7.12 per cent for a 22-year security, 7.13 per cent for a 23-year security, 7.15 per cent for a 24-year security, and 7.16 per cent for a 25-year security.
After Maharashtra, Andhra Pradesh generated Rs 3,600 crore by issuing two securities worth Rs 1,500 crore and Rs 2,100 crore, with yields of 6.87 per cent and 6.88 per cent respectively, for tenures of 8 and 9 years.
Uttar Pradesh generated Rs 3,000 crore by issuing a single security with a yield of 6.86 percent for an 8-year period.
Uttar Pradesh is succeeded by Telangana and Punjab, each of which raised Rs 2,500 crore. Punjab also recorded the highest return on its security at 7.19 per cent for a period of 24 years.
Telangana secured Rs 2,500 crore through three different securities, with two of them amounting to Rs 1,000 crore each. The first one was issued at a yield of 7.10 per cent for a period of 32 years, while the second was offered at a yield of 7.09 per cent for 35 years. The third security, worth Rs 500 crore, was issued for a tenure of 38 years with a yield of 7.09 per cent.
West Bengal, Gujarat, and Bihar each issued securities worth Rs 2,000 crore. West Bengal did so at a yield of 7.07% for a period of 12 years, Gujarat at 6.80% for nine years, and Bihar at 6.90% for ten years.
Other bidders in the auction were Odisha, which generated Rs 1,500 crore by issuing two securities worth Rs 1,000 crore and Rs 500 crore. The first was issued at a yield of 6.98 per cent for a period of 12 years, while the second was offered at 6.13 per cent for a duration of three years.
Tamil Nadu generated Rs 1,000 crore by issuing a bond with a yield of 6.82 percent for a period of 10 years. Goa secured Rs 100 crore at 6.89 percent for a term of 10 years.
The RBI carried out this yield-based auction as part of its standard borrowing schedule for states, assisting them in fulfilling their capital spending and financial requirements. (ANI)