The most awaited listing of SBI Cards and Payment Services Ltd (SBI Cards), on BSE and NSE expected on Monday (March 16) is going to be a muted event following the Coronavirus carnage that was witnessed at the domestic stock market.
Analysts said they had anticipated a higher subscription rate but acknowledged that the spread of the coronavirus had major knock-on effects on markets and the wider economy.
Some industry watchers say investors will likely get between 10-20 per cent premium on its listing. However, fears over coronavirus spread may shrink the premium even further. The coronavirus outbreak coupled with oil crisis has led to a major blow to the stock market, which is why investors are fearing of a tepid listing of SBI Cards.
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With high expectations of muted premium against earlier expectations of 30-40 per cent, the investors who betted under the high net worth individuals may take a huge beating, as many of them borrow money at a high-interest rate.
S Ranganathan, Head of Research at LKP Securities said, “"The grey market premium for the IPO of SBI CARDS has seen a sharp drop from 350 levels to 35 levels, which clearly points towards a muted listing in the range of Rs 800-850. We expect the stock to get listed in this above range also because of the refunds have already been credited to investors account on Friday March 13, which itself is an awesome amount".
SBI Cards share has a face value of Rs 10 and the shares were offered in the book built IPO in the price band of Rs 750-755 per share. The issue price is fixed at the lower end of the band at Rs 750 per share.
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If you had applied for shares of SBI Cards in its recent IPO, then you can check the status of your allotment you can log in to the issuer’s Registrar and Transfer Agent (RTA) Link Intime, India.Applicants can search by PAN or application number to know the status. Applicants can also search for the allotment status on BSE’s website.
SBI Cards, the credit card arm of the SBI, the country's top public lender, drew bids for 225 crore shares, compared about 10 crore shares on offer, stock exchange data showed. Non-institutional investors category was subscribed 45 times and retail individual investors 2.5 times.
SBI Cards’ Rs 10,000 crore IPO is the first by a credit card issuer in India and the fifth largest by any company in India. The issue, which opened on March 2, came at a time when global financial markets were roiled by fears of the economic impact of the coronavirus.
