Several state governments collectively raised Rs 11,600 crore through a yield and price-based auction of state government securities (SGS) conducted on Tuesday, according to data released by the Reserve Bank of India (RBI).
The auction reflected continued investor demand for longer-duration papers, even as yields remained broadly stable compared to previous issuances.
Among major borrowers, Andhra Pradesh raised Rs 3,000 crore through three tranches, including two re-issues of 7.50% SGS 2045 and 2046, priced at yields of 7.4873% and 7.4894%, respectively. The state also issued a fresh 12-year bond at a yield of 7.30%.
Goa accepted Rs 100 crore at a yield of 7.25% for an 11-year tenor, while Kerala raised Rs 2,000 crore at 7.48% for a 20-year maturity.
In one of the larger issuances, Maharashtra raised Rs 2,000 crore through two re-issues — 7.20% SGS 2036 and 7.26% SGS 2042 — at yields of 7.1901% and 7.3813%, respectively. However, the state chose not to accept bids for its re-issues of 7.29% SGS 2050 and 7.16% SGS 2055, reflecting selective borrowing aligned with its funding strategy.
Rajasthan raised Rs 500 crore at 6.66% for a 4-year tenor, while Tamil Nadu mobilized Rs 3,000 crore, split between a 10-year bond at 7.14% and a 30-year bond at 7.46%. Telangana also garnered Rs 1,000 crore through a 32-year bond at 7.45%.
Overall, seven states participated in the auction, with total bids amounting to Rs 13,600 crore, of which Rs 11,600 crore was accepted.