State governments raised a total of Rs 38,050 crore at the yield- and price-based auction of State Government Securities held on February 3, data released by the Reserve Bank of India showed. The amount accepted exceeded the notified Rs 36,500 crore, reflecting firm investor demand across maturities.
Excess acceptance was driven by strong demand for select state papers, particularly from Gujarat and Maharashtra, where issuers raised more than the notified amounts.
Andhra Pradesh raised Rs 3,300 crore across three tranches, including a re-issue of its 7.48% SGS 2035 at a yield of 7.5418%, along with fresh 13-year and 15-year bonds at yields of 7.68% and 7.71%, respectively. Assam mobilised Rs 1,000 crore through a 15-year security at a cut-off yield of 7.68%.
Chhattisgarh raised Rs 2,000 crore via a re-issue of its 7.19% SGS 2035 at a yield of 7.5406% and a 16-year bond at 7.75%. Gujarat accepted Rs 1,500 crore against a notified Rs 1,000 crore through a 6-year security at a cut-off yield of 7.17%, taking in an additional Rs 500 crore due to strong demand.
Karnataka emerged as one of the largest borrowers, raising Rs 6,000 crore across three tranches. This included a re-issue of the 7.15% Karnataka SGS 2031 at a yield of 7.1183%, along with 7-year and 9-year papers at yields of 7.33% and 7.49%.
Maharashtra accepted Rs 5,550 crore across three securities, exceeding the notified amount. The state raised Rs 1,850 crore each through 4-year, 8-year, and 11-year bonds at yields of 6.90%, 7.44%, and 7.54%, respectively, accepting an additional Rs 350 crore in each tenor.
Tamil Nadu raised Rs 4,000 crore across three maturities, including re-issues of its 7.50% SGS 2036 and 7.53% SGS 2037 at yields of 7.5199% and 7.5500%, along with a 30-year bond at 7.61%.
Other participants included Madhya Pradesh, which raised Rs 5,200 crore across 7-year, 17-year, and 22-year securities; Uttar Pradesh, which mobilised Rs 3,000 crore through 10-year and 11-year bonds; and West Bengal, which raised Rs 3,000 crore via 17-year and 20-year papers. Haryana raised Rs 1,000 crore through a 15-year security at a cut-off yield of 7.69%. Jammu and Kashmir mobilised Rs 500 crore via a 17-year bond at a yield of 7.72%.