The Reserve Bank of India has announced an auction of State Government Stocks for an aggregate face value of ₹18,100 crore. The auction will be held on July 28, 2026, through RBI’s Core Banking Solution, E-Kuber.
The securities are being offered by seven state governments: Andhra Pradesh, Gujarat, Maharashtra, Punjab, Rajasthan, Tamil Nadu and Telangana. The sale includes both re-issued State Government Securities and new stocks to be auctioned on yield basis.
States and amounts in the auction
Andhra Pradesh has offered to raise ₹2,600 crore. This includes ₹1,000 crore through re-issue of 7.56% Andhra Pradesh SGS 2039, issued on July 1, 2026, and ₹1,600 crore through a 25-year stock to be auctioned on yield basis.
Gujarat has offered two re-issues of ₹1,000 crore each. These are 7.38% Gujarat SGS 2035 and 7.51% Gujarat SGS 2038, both originally issued on July 15, 2026.
Maharashtra has the largest listed borrowing in the release, with three re-issued stocks. It will raise ₹1,000 crore through 7.35% Maharashtra SGS 2031, ₹2,400 crore through 7.91% Maharashtra SGS 2039, and ₹1,600 crore through 8.07% Maharashtra SGS 2049. The state has also listed additional borrowing, or greenshoe, options of ₹250 crore, ₹600 crore and ₹400 crore on these three securities respectively.
Punjab has offered two re-issued securities of ₹1,000 crore each: 7.02% Punjab SGS 2030 and 7.62% Punjab SGS 2039. Each carries an additional borrowing option of ₹200 crore.
Rajasthan will raise ₹3,500 crore in total, comprising ₹1,500 crore through an 18-year stock to be auctioned on yield basis and ₹2,000 crore through re-issue of 7.65% Rajasthan SGS 2053, issued on July 1, 2026.
Tamil Nadu has offered ₹2,000 crore through two re-issued stocks: ₹1,000 crore in 7.39% Tamil Nadu SGS 2034 and ₹1,000 crore in 7.59% Tamil Nadu SGS 2041. Telangana has offered ₹1,000 crore through re-issue of 7.65% Telangana SGS 2055.
Bidding schedule and investor route
Both competitive and non-competitive bids must be submitted electronically on E-Kuber on July 28. Competitive bids will be accepted between 10:30 a.m. and 11:30 a.m. Non-competitive bids will be accepted between 10:30 a.m. and 11:00 a.m.
Under the non-competitive bidding facility, up to 10% of the notified amount of the sale of each stock will be allotted to eligible individuals and institutions. A single bid per stock is subject to a maximum limit of 1% of the notified amount of that stock. Individual investors may also place bids under the non-competitive scheme through the RBI Retail Direct portal.
RBI said physical bids would be accepted only in the event of a system failure. Such bids must be submitted to the Public Debt Office in the prescribed form before the auction timing ends.
Issue terms and payment
The Reserve Bank of India will decide the maximum yield or minimum price at which bids are accepted. The yield per cent per annum or the price quoted by bidders must be expressed up to two decimal points.
An investor may submit more than one competitive bid at the same or different yields or prices. However, the total amount of bids from a bidder must not exceed the notified amount for each state.
The stocks will be issued for a minimum nominal amount of ₹10,000 and in multiples of ₹10,000 thereafter. The auction results will be announced on July 28, 2026. Successful bidders must make payment during banking hours on July 29, 2026, at Mumbai and at the respective Regional Offices of RBI.
For new State Government Stocks, the interest rate will be determined by RBI at the auction. Interest on new stocks will be paid half-yearly on January 29 and July 29 each year until maturity. For re-issued Government Stocks, interest will be paid at the rate fixed on the original issue date, on a half-yearly basis until maturity.
The securities will be governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007. RBI also stated that investment in State Government Stocks will count as eligible investment in Government Securities by banks for Statutory Liquidity Ratio purposes under Section 24 of the Banking Regulation Act, 1949. The stocks will also qualify for the ready forward facility.
Source: Reserve Bank of India Press Releases.