The Government of India will conduct an underwriting auction for the re-issuance of government securities worth ₹32,000 crore on July 17.

Traders Union
All News
Central Banks
Government securities underwriting auction

Highlights

The Government of India will conduct a multiple price-based underwriting auction for the re-issuance of government securities worth ₹32,000 crore on July 17.
The auction includes ₹11,000 crore of 6.03% GS 2029, ₹11,000 crore of 6.68% GS 2033, and ₹10,000 crore of 7.24% GS 2055.
The minimum underwriting commitment for each primary dealer is set at ₹262 crore for 2029 and 2033, and ₹239 crore for 2055.

This article was translated from the original. Read the original version by our correspondent here.

Auction Structure and Bidding Schedule

According to the press release issued by the Reserve Bank of India, the underwriting auction will be conducted on Friday, July 17, 2026, using a multiple price method. Primary dealers can electronically submit their bids for the additional competitive underwriting auction through the Reserve Bank of India Core Banking Solution, e-Kuber system, between 09:00 and 09:30 AM on the same day.

The re-issuance includes ₹11,000 crore of 6.03% GS 2029, ₹11,000 crore of 6.68% GS 2033, and ₹10,000 crore of 7.24% GS 2055. The minimum underwriting commitment for each primary dealer is ₹262 crore for the 2029 and 2033 securities, and ₹239 crore for the 2055 security. The minimum bid obligation under the additional competitive underwriting auction is also set at these levels.

Obligations on Primary Dealers and Market Significance

This arrangement is implemented under the underwriting commitment scheme notified on November 14, 2007, and ensures the participation of primary dealers in the smooth execution of the government borrowing program. The underwriting framework supports the government in raising planned borrowings while maintaining demand across various maturities.

The underwriting commission will be credited to the current accounts of the respective primary dealers with the RBI on the day of the securities' issuance. This mix of securities maturing from 2029 to 2055 reflects a continuous strategy for managing borrowings across the short, medium, and long ends of the yield curve.

Our previous report on the key terms and valuation of the SBI Funds Management IPO highlighted that the company entered the market with a plan to raise around ₹9,813 crore at a price band of ₹545-574. The article also noted that, based on the estimated FY26 profit, its valuation is relatively lower compared to listed peers, while the company's market share, distribution network, and strong profitability remain key focus areas for investors.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.