The Government of India will sell ₹34,000 crore of the 6.94% Government Security 2036 through a multiple-price auction on 13 November, the Reserve Bank of India said.
The Centre may retain additional subscriptions of up to ₹2,000 crore, potentially taking the total issuance to ₹36,000 crore. Settlement is scheduled for 16 November.
Price-based bidding for a reissue
Because the security is being reissued, competitive bids will be placed in price terms. In a multiple-price auction, successful bidders receive allotment at their respective accepted prices rather than at one uniform cut-off price.
Competitive bids on RBI’s e-Kuber system are due between 10:30 a.m. and 11:30 a.m. on 13 November. The non-competitive window closes at 11 a.m., and up to 5% of the notified amount is available to eligible participants through that route.
Primary dealers can submit bids for the additional competitive underwriting portion between 9 a.m. and 9:30 a.m. The bond will also be eligible for when-issued trading from 11 to 13 November.
Supply meets the prevailing yield curve
For the debt market, the auction tests demand in the ten-year area of the sovereign curve. Bid distribution, the cut-off price and the extent of primary-dealer underwriting will indicate how comfortably investors absorb the new supply.
The greenshoe gives the government flexibility to accept more demand without committing the extra issuance in advance. Its use will depend on auction conditions.
The outcome will be assessed alongside liquidity, expectations for inflation and policy rates, and the pipeline of state and central borrowing. The immediate checkpoints are the 13 November auction result and the security’s secondary-market performance into settlement.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
