Twelve state governments and one Union Territory raised Rs. 443 billion (including greenshoe) through state government securities (SGS) on March 2, 2026, ~24% above the amount indicated in the Q4 FY2026 auction calendar. Gujarat and Maharashtra accepted an additional Rs. 12 billion through the greenshoe option. The weighted average SGS cut-off increased to 7.49% on March 2, 2026 from 7.47% last week amid the weighted average tenor of all SGS rising mildly to 14 years from 13 years during the same period. However, the spread between the cut-off yield of the 10-year SGS and the 10-year G-sec (06.48 GS 2035) declined to 75 bps as on March 2, 2026 from 78 bps last week.

• Twelve state governments and one UT raised Rs. 443 billion through SGS on March 2, 2026, a sharp ~24% above the Rs. 358 billion initially indicated for this week. Notably, Gujarat and Maharashtra together accepted an additional Rs. 12billion through the greenshoe options.
• Five states (Gujarat, Himachal Pradesh, Madhya Pradesh, Telangana and Uttarakhand) raised Rs. 133 billion in this week’s auction even though they had not initially indicated that they would participate in this auction. Another four states/UT (Jammu and Kashmir, Karnataka, Maharashtra and Tamil Nadu) together raised Rs. 71 billion additional SGS beyond their planned amount. In contrast, seven states (Andhra Pradesh, Goa, Haryana, Kerala, Punjab, Rajasthan and Sikkim) did not participate in this auction despite earlier indicating to raise Rs. 114 billion on March 2, 2026. Further, West Bengal (WB) under borrowed by Rs. 5 billion. The SGS issuance of Assam, Chhattisgarh and Uttar Pradesh was in line with their indicated amount in this weekly auction.

Source: RBI, ICRA Research