Research Report

In the biggest auction FY2027 till date, 16 state governments raised Rs. 346 billion through state government securities (SGS) on September 15, 2026. This was a sharp ~44% above the amount indicated in the Q2 FY2027 auction calendar. In today’s SGS auction, Telangana and Tamil Nadu were the largest borrowers, raising Rs. 75 billion and Rs. 60 billion, respectively, and collectively accounting for nearly 40% of the total issuance. The actual issuance by states that had adopted the Benchmark Issuance Strategy (BIS) was in line with their indicated amounts for this auction, except for Delhi (under borrowed by Rs. 4 billion), Uttarakhand (non- acceptance of bids for its 18-year paper against the notified amount of Rs. 4 billion), Madhya Pradesh (under borrowed by Rs. 19 billion) and Telangana (borrowed Rs. 75 billion even though it had not indicated to raise).

EXHIBIT: Indicated and actual SGS issuances in Q2 FY2027 so far