The enhanced debt limit auction held by the Securities and Exchange Board of India for foreign investors was oversubscribed, officials in the know of the situation said.
On Thursday, Sebi held an auction for foreign institutional investors for $13 billion worth of enhanced debt limit. ?Foreign investors showed maximum interest in the existing limit for corporate bonds with Sebi receiving bids worth Rs 155 billion against the auction amount of Rs 66 billion,? an official said on Friday.
The highest bid for existing limit for corporate bonds was at 1.61 paise/Rs 10 million, the official said.
On September 23, government had doubled investment limit for overseas investors to $10 billion in government securities. The foreign investor investment limit in corporate bonds was raised to $20 billion from $15 billion. The auction for increased debt limit for government bonds received the second highest number of bids at Rs 29,900 crore against the total auction amount of Rs 22,000 crore officials said.
The highest bid was at 5 paise/Rs 10 million. ?Cutoff for gilts was 10 paise while that for existing corporate bonds was 35 paise,? an official at a foreign bank said.
Infrastructure bonds got the lowest number of bids at Rs 18,900 crore which was lower than the auction quantum of Rs 22,000 crore. The highest bid for infrastructure bonds was at 0.50 paise/Rs 1 crore, dealers said. ?The auction was spilt in three parts: $5 billion for new limits for government bonds, $5 billion of new limits for corporate bonds and $3 billion of existing (unfilled) limits for corporate bonds,? JP Morgan said in a research note ahead of the auction.