States raise Rs 25,000 crore through SGS auction held on September 23, with cut-off yields largely in the range of 7.26-7.45 per cent, according to the Reserve Bank of India. Telangana was a large borrower, raising a total of Rs 5,000 crore through four tranches of 22 to 26 years maturity.
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States mobilised Rs 25,000 crore through the auction of State Government Securities (SGS) held on September 23, with cut-off yields largely in the range of 7.26-7.45 per cent, according to the Reserve Bank of India (RBI).
Bihar, Chhattisgarh, Gujarat, Kerala, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Telangana and West Bengal were among the participating states. The notified total amount for the auction stood at Rs 27,000 crore, while the total allotment amounted to Rs 25,000 crore.
Telangana was a large borrower, raising a total of Rs 5,000 crore through four tranches of 22 to 26 years maturity, all at a uniform cut-off yield of 7.44 per cent.
Bihar comes second, raising Rs 4,000 crore through two issuances, 20-year and 25-year maturities at a cut-off yield of 7.45 per cent. Chhattisgarh garnered Rs 500 crore via the re-issue of its 7.0 per cent SGS 2029 at a lower yield of 6.67 per cent. Gujarat mobilised Rs 1,500 crore for its 2032 bond at a yield of 7.07 per cent.
Kerala tapped the market with a 25-year security, raising Rs 1,000 crore at 7.44 per cent. Madhya Pradesh came in with two tranches, one of 18 years and another of 21 years, collectively raising Rs 3,000 crore at yields of 7.43 to 7.44 per cent.
Maharashtra issued an 11-year SGS 2036, raising Rs 1,000 crore at 7.27 per cent. However, the state declined to accept any bids for its proposed re-issues of the 7.14 per cent SGS 2045 and 7.15 per cent SGS 2046, originally issued earlier this year.
Punjab raised Rs 1,000 crore by re-issuing its 6.98 per cent 2033 security, with the weighted average yield settling at 7.36 per cent. Rajasthan mobilised Rs 1,500 crore via a 10-year bond at 7.29 per cent.
Tamil Nadu tapped the market with four separate issuances, each of Rs 1,000 crore, maturing in 2031, 2032, 2033 and 2035. The yields ranged between 7.02 per cent and 7.26 per cent, with weighted averages between 7.00 and 7.23 per cent.
West Bengal raised Rs 2,500 crore, split between an 11-year security at 7.42 per cent and a re-issue of its 7.47 per cent 2044 paper, which garnered Rs 1,500 crore at 7.45 per cent.
Across states, the weighted average yield largely hovered near the 7.4 per cent mark.
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