Short Description: Multiple Indian states set to raise ₹48,615 Crore via bond auctions on Feb 10, 2026. Key details on tenors, greenshoe options, and participation for investors.
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Main Article:
Major Indian State Bond Auctions Scheduled for February 2026
A significant window for government securities investment is opening as fourteen Indian State Governments have announced a collective auction to raise ₹48,615 Crore (approx. $5.8 billion). The auction, scheduled for February 10, 2026, will be conducted on the Reserve Bank of India’s E-Kuber system. This substantial fund-raising exercise highlights the ongoing capital requirements for state-level infrastructure and development projects across India. Key participants like Maharashtra, Tamil Nadu, Karnataka, and Gujarat are leading the issuance, offering a diverse mix of tenors and auction types for institutional and retail investors.
The auction features a varied slate of State Development Loans (SDLs), with tenors ranging from 5 years to as long as 27 years. Notably, several states, including Maharashtra, Tamil Nadu, and Karnataka, are conducting re-issue auctions of existing securities, providing liquidity in specific, previously issued bonds. While most offerings are standard yield-based auctions, some re-issues will be price-based. A critical feature for investors to note is the greenshoe option, an additional borrowing clause, which is active only for Gujarat and Maharashtra’s issuances, allowing them to retain oversubscription up to ₹500 Crore and ₹350 Crore per tranche, respectively.
For investors, particularly those accessing the market through the RBI’s Retail Direct portal, the process is clearly defined. Non-competitive bidding, which allows smaller investors to participate without specifying a yield, will be accepted between 10:30 AM and 11:00 AM IST on the auction day. Competitive bids follow until 11:30 AM IST. The results will be announced on the same day, with payment due on February 11, 2026. These SDLs are eligible for Statutory Liquidity Ratio (SLR) requirements for banks and qualify for the ready forward facility, enhancing their attractiveness within the Indian debt ecosystem.
Short Summary:
Fourteen Indian states will auction bonds worth ₹48,615 Crore on February 10, 2026. The offering includes bonds with tenors from 5 to 27 years, featuring both yield and price-based auctions. Key points for investors include active greenshoe options for two states, re-issues of existing securities, and clear timelines for competitive and non-competitive bidding via the RBI’s E-Kuber system and Retail Direct portal.
