The Finance Ministry has unveiled plans for the sale of government bonds valued at Rs 24,000, divided into two categories.
In the first segment, the offering includes the '7.37 per cent Government Security 2028,' set at a notified amount of Rs 12,000 crore, utilizing a price-based auction employing the multiple price method. Meanwhile, the second category comprises the 'New Government Security 2064,' totaling Rs 12,000 crore (nominal), to be auctioned through a yield-based approach, also using the multiple price method.
As outlined in the Finance Ministry's statement, there's provision for the government to retain additional subscriptions up to Rs 2,000 crore for each security.
The auctions, facilitated by the Reserve Bank of India (RBI), are scheduled to take place in Mumbai on April 19.
Under the scheme for Non-Competitive Bidding Facility in the Auction of Government Securities, up to 5 per cent of the notified amount will be allocated to eligible individuals and institutions.
On April 19, both competitive and non-competitive bids are to be submitted electronically via the RBI Core Banking Solution (E-Kuber) system. Non-competitive bids should be submitted between 10:30 a.m. and 11 a.m., while competitive bids are scheduled between 10:30 a.m. and 11:30 a.m., according to the statement.
Following the auctions, results will be declared on April 19, with successful bidders expected to make payments by April 22.
Furthermore, the securities will be eligible for 'When Issued' trading, adhering to RBI guideline.
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