Where to find the details of the forthcoming SDL IPO incluing coupon rates in the month of December 2021

Where to find the details of the forthcoming State Development Loan IPO for the Month of December 2021. Can anyone guide please .

NSE publishes list of upcoming govt issues. It has both Gsec and SDL issue details

https://www1.nseindia.com/products/content/debt/ncbp/ncbp_issues.htm

If you need more details you can refer to RBI press releases. Once in a while it have announcements about SDL / govt stock auction and it has lot more details about how auction would be carried out and other details.

https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx

Thanks for the information. Neither of the sites however provides coupon details for the forthcoming SDL IPO.

Yes because it is auction on yield.
So in layman’s term, RBI is asking for bids on specified date, and those who bid lowest yield is alloted the SDL.
So coupon rate would be “discovered” during auction.

Details about outcome of last auction of SDL can be found in this release

https://m.rbi.org.in//scripts/BS_PressReleaseDisplay.aspx?prid=52718

Similar process would happen for this auction

Thanks for detailed explanation, Mr Akash Shah.

Let me add further that RBI has now enabled retial investors to have SGL directly with RBI and bid directly along with other primary dealers in the DEBT Primary market during bidding days for fixing the coupon rates . This is great initiative by Gov.

All the participating members in the auction are basically working with the time value of money on the issue price for each instrument for the entire debt tenure. When heavy discounting is applied within a range of 9.5 to 9.99 ( Examples of some of the Gujrat , Karnataka SDL that happened this year ) , the issue bid prices come down to as much as 890-910 from 1000. The retail investors facing the burnt of core inflation do like to apply steep discount rate while working out the present value of issue price in alignment with the debt tenureproposed by the issuing states. It is because of the hard days with spiralling prices in the economy for consumer durables and non durables. But the pity is that these are not wihin the ranges of lowest discount rates to qualify for acceptance by RBI.

Banks are other entities only try to see their gain on thousads of croes of deposits to manage the cash outflow commitments to depositors.That is why it does not matter much to them whether the discounting represtns true picture of economic hardship.

But I still wonder how some of the recent SDL of Gujrat and Rajasthan IPO was settled with 9.5 and 9.99 coupon rate after the auction ? Any insight on this ?

I am not sure when did this happen. In last couple of auction I have never seen yield above 9%
For eg. 14 dec auction Karnataka sdl closed at 6.8ish

On 1st Nov, Rajasthan was around 7%

Not sure which auction you are referring to.
But I haven’t seen anything like 9% yield on SDL for long time.