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Govt to auction Rs 32,000 crore of four gilts on July 15

The auction of 2027, 2028 and 2036 gilts will be held via "uniform price method", whereas, the auction of 2051 gilt will be conducted through "multiple price method", the finance ministry said.

July 11, 2022 / 10:59 PM IST
(Representative image)

(Representative image)

The Government of India will auction Rs 32,000 crore of four gilts on July 15, the Ministry of Finance announced on July 11.

This includes an auction of Rs 9,000 crore of '7.38% Government Security, 2027', Rs 4,000 crore of 'GoI Floating Rate Bonds, 2028', Rs 10,000 crore of '7.54% Government Security 2036' and Rs 9,000 crore of '6.99% Government Security 2051', as per an official release.

The auction of 2027, 2028 and 2036 gilts will be held via "uniform price method", whereas, the auction of 2051 gilt will be conducted through "multiple price method", it added.

"GoI will have the option to retain additional subscription up to Rs 2,000 crore against each security mentioned above," the finance ministry said.

Also Read | Rising Rates: Why investors are buying into gilt funds and 10-year constant maturity gilt funds

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The auctions will be conducted by the Reserve Bank of India (RBI), Mumbai office. "The result of the auctions will be announced on July 15, 2022 and payment by successful bidders will be on July 18, 2022," the release added.

Up to 5 percent of the notified amount of the sale of the securities will be allotted to eligible individuals and institutions as per the "scheme for non-competitive bidding facility in the auction of government securities", it said.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on the RBI Core Banking Solution (E-Kuber) system on July 15.

"The non-competitive bids should be submitted between 10.30 a.m. and 11.00 am and the competitive bids should be submitted between 10.30 a.m. and 11.30 a.m," the finance ministry further noted.
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first published: Jul 11, 2022 10:59 pm
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