In a recent announcement, the Finance Ministry unveiled plans for the sale of Government bonds valued at Rs 28,000 crore slated for Friday, May 3, through a price-based auction employing the multiple price method.
The offering will be divided into three lots. The first lot consists of "7.33 per cent Government Security 2026" worth Rs 6,000 crore, and the second lot, namely "7.23 per cent Government Security 2039," is worth Rs 10,000 crore, and the third lot, namely "7.34 per cent Government Security 2064," is worth Rs 12,000 crore.
The government shall also have the option to subscribe up to an additional amount of Rs 2,000 crore for each security.
The auction shall be conducted by the Reserve Bank of India, Mumbai, and up to 5 per cent of the notified amount shall be allowed to be awarded to eligible individuals and institutions under the Scheme for Non-Competitive Bidding Facility.
All bids, competitive and non-competitive alike, must be submitted electronically via the RBI's Core Banking Solution (E-Kuber) system on May 3, 2024. Non-competitive bids are to be submitted between 10:30 a.m. and 11 a.m., while competitive bids are accepted from 10:30 a.m. to 11:30 a.m., as per the Finance Ministry's directive.
The outcome of the auctions will be revealed on May 3, with successful bidders required to make payments on May 6, 2024 (Monday). Furthermore, the securities will be eligible for "When Issued" trading following RBI guidelines.
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