Rs 27,000 crore worth government securities fully subscribed on Friday

MUMBAI: The central government on Friday auctioned securities worth total Rs 27,000 crore (Rs 15,000 crore maturing in 2030 and Rs 12,000 crore maturing in 2054).

According to Reserve Bank of India (RBI), the government securities was subscribed to in entirety. The 2030 maturing bond will yield 6.01 per cent annualized returns, and 7.09 per cent for the 2054 maturing bond.

The underwriting auction was conducted through multiple price-based method today. Primary Dealers have submitted their bids for auction electronically through Core Banking Solution (E-Kuber) System between 09:00 A.M. and 09:30 A.M. on the day of underwriting auction (today).

The underwriting commission will be credited to the current account of the respective primary dealers with RBI today itself. Primary dealers are registered entities with the RBI who have the license to purchase and sell government securities.

Recently, as many as twelve Indian states raised a total of Rs 26,900 crore in the latest auction of State Government Securities (SGS), RBI data showed. All participating states accepted the full amount they had notified for the auction.

Maharashtra led the fundraising drive, mobilising Rs 6,000 crore through four securities. The state offered yields 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.

Following Maharashtra, Andhra Pradesh raised Rs 3,600 crore through two securities of Rs 1,500 crore and Rs 2,100 crore against a lower yield of 6.87 per cent and 6.88 per cent for tenures of 8 and 9 years, respectively.

Uttar Pradesh raised Rs 3,000 crore through one security at a yield of 6.86 per cent for a tenure of 8 years.

Uttar Pradesh is followed by Telengana and Punjab, both of which raised Rs 2,500 crore each. Punjab also gave the highest yield on its security of 7.19 per cent for a tenure of 24 years.

Telangana’s Rs 2,500 crore was through three securities, two of Rs 1,000 crore each, the first at a yield of 7.10 per cent for 32 years and the second at a yield of 7.09 per cent for a tenure of 35 years. The third security of Rs 500 crore was raised by the state for 38 years at a yield of 7.09 per cent.

West Bengal, Gujarat and Bihar raised securities worth Rs 2,000 crore each. West Bengal at a yield of 7.07 per cent for a tenure of 12 years, Gujarat with a yield of 6.80 per cent for a tenure of nine years and Bihar with a yield of 6.90 per cent for a tenure of 10 years.

Other participants in the auction included Odisha, which raised Rs 1,500 crore through two securities of Rs 1,000 crore and Rs 500 crore. First at a yield of 6.98 per cent for a tenure of 12 years and second at 6.13 per cent for a tenure of three years, respectively.

Tamil Nadu raised Rs 1,000 crore through a security with a yield of 6.82 per cent for a tenure of 10 years. Goa raised Rs 100 crore at 6.89 per cent for a tenure of 10 per cent.

RBI had conducted this yield-based auction as part of its regular borrowing calendar for states, helping them meet their capital expenditure and fiscal needs. (ANI)