The Business Bytes
New Delhi, April 29, 2024 (TBB Bureau): The Union Finance Ministry on Monday unveiled plans to issue Government bonds worth Rs 28,000 crore slated for May 3, split into three tranches to be auctioned through a price-based method using the multiple price approach.
The initial lot encompasses “7.33 per cent Government Security 2026” valued at Rs 6,000 crore. Following suit, the second lot consists of “7.23 per cent Government Security 2039” amounting to Rs 10,000 crore, while the third encompasses “7.34 per cent Government Security 2064” valued at Rs 12,000 crore.
Moreover, the government reserves the option to retain an additional subscription of up to Rs 2,000 crore for each security.
The auctions will be administered by the Reserve Bank of India in Mumbai. Additionally, up to 5 per cent of the notified sale amount of the securities will be allotted to eligible individuals and institutions as per the Scheme for Non-Competitive Bidding Facility in Government securities auctions.
Both competitive and non-competitive bids for the auction must be submitted electronically via the RBI’s Core Banking Solution (E-Kuber) system on May 3, 2024. Non-competitive bids should be submitted between 10:30 a.m. and 11:00 a.m., while competitive bids should be lodged between 10:30 a.m. and 11:30 a.m., as detailed by the Finance Ministry.
The result of the auctions will be declared on May 3, with successful bidders required to make payments by May 6, 2024 (Monday).
These securities will be eligible for “When Issued” trading in accordance with RBI guidelines.
