Mumbai: Foreign investor interest in India’s unrestricted and unutilised corporate and government bond limits auction was strong, but longer maturity papers were under-subscribed, four market sources told Reuters.
The stock market regulator, Sebi, auctioned Rs1,464 crore ($260 million) in government bonds under the no-residual maturity restriction category, and Rs3,837 crore for debt with residual maturity of over 5 years.
The limit for bonds with no restrictions was over-subscribed at Rs2,902 crore, though the limit for long-term category debt was under-subscribed at Rs2,437 crore. The cut-offs came in at 0.0610% and 0.000010%, respectively.
For corporate bonds with no residual maturity or sector restriction, the unused limit to be sold was Rs1,599 crore while the amount to be sold for corporate bonds in the long-term infrastructure category was Rs7,802 crore.
The bids received in the unrestricted category totalled Rs3,533 crore at a cut-off of 0.2420%, compared with 0.135% in last month’s auction.
The cut-off on the long-term corporate bonds under the infrastructure category was 0.000020% with a total of Rs6,381 crore in bids received.
“Most of the foreign investors who sold their investments in equities are left with cash and deployed this in debt as they will incur a huge loss if they take their money out of India now due to the rupee’s depreciation,” said a foreign bank dealer involved with the auction.