Twelve states to sell ₹29,900 crore of stock in one RBI auction
Twelve states and union territories will together offer ₹29,900 crore of stock in a single auction on November 3, the Reserve Bank of India said, with Maharashtra accounting for the largest slice at ₹7,200 crore. The sale runs on the RBI's E-Kuber core banking system, and the central bank will set the maximum yield or minimum price at which bids are accepted.
Maharashtra's four lines span 2031 to 2049, all re-issues of stock first sold in August and October. Madhya Pradesh follows with ₹4,000 crore across three re-issues running to 2056, while West Bengal is seeking ₹5,000 crore and Karnataka ₹2,000 crore. Andhra Pradesh, Gujarat, Punjab, Rajasthan and Telangana each add between ₹2,000 crore and ₹3,000 crore, with Delhi, Goa and Meghalaya making up the remainder.
Most of the paper is being re-issued at coupons between 7.09% and 8.06%, a reminder of how far yields have travelled since the older lines were first sold. Delhi, Meghalaya, Rajasthan and Telangana are instead offering new stock, priced at auction on a yield basis, with tenors stretching from six to 26 years.
Retail investors can take part. Up to 10% of each notified amount is reserved for eligible individuals and institutions under the non-competitive bidding scheme, capped at 1% of the notified amount per bid per stock, and individuals can also bid through the RBI's Retail Direct portal. Competitive bids close at 11:30am on November 3 and non-competitive bids at 11am, with results announced the same day and payment due on November 4.
The stock qualifies as an eligible investment for banks' statutory liquidity ratio under the Banking Regulation Act, 1949, and will be issued in minimum lots of ₹10,000. Interest on the new lines is paid half-yearly on May 4 and November 4 until maturity.
