Maharashtra rejects bond bids again as seven states raise ₹11,600 crore

Maharashtra declined all bids for its long-term bond re-issues even as seven states raised Rs 11,600 crore, below the notified Rs 13,600 crore, at the weekly auction on Tuesday

Seven states raised ₹11,600 crore at the weekly bond auction on Tuesday, lower than the notified amount of ₹13,600 crore. Maharashtra rejected all bids for the re-issue of its 2050 and 2055 bonds, each worth ₹1,000 crore.

 

The amount borrowed was also well below the ₹19,450 crore indicated in the borrowing calendar.

 

“The cut-offs were along the expected lines. For Maharashtra, the bidding was also good, but they decided not to accept any bid,” said a dealer at a state-owned bank. 

 

Maharashtra had rejected bids on August 26 this year. According to experts, Maharashtra's fiscal position is better than some