Live tv
search
  1. You Are At:
  2. English News
  3. Business
  4. SBI Card IPO Day 2: IPO of SBI Cards sees subscription of over 58% so far

SBI Card IPO Day 2: IPO of SBI Cards sees subscription of over 58% so far

SBI Cards's mega IPO has subscribed 39 per cent on Day 1, riding on its parentage. The IPO of SBI Cards and Payment Services - the credit card arm of the country's largest lender State Bank of India (SBI) is open for subscription on day 2. The IPO will close on March 5.

India TV Business Desk Edited by: India TV Business Desk New Delhi Updated on: March 03, 2020 14:27 IST
SBI Card IPO Day 2:  IPO of SBI Cards opens for

SBI Card IPO Day 2:  IPO of SBI Cards opens for subscription

SBI Cards's mega IPO has seen subscription of  58.46 per cent on March 3, the second day of bidding. As per the data showed by exchanges, the first IPO of 2020 has received bids for over 5.71 crore equity shares against issue size of more than 10 crore shares (excluding anchor book's portion).

SBI Cards's mega IPO has subscribed 39 per cent on Day 1, riding on its parentage. The IPO of SBI Cards and Payment Services - the credit card arm of the country's largest lender State Bank of India (SBI) is open for subscription on day 2. The IPO will close on March 5.

The public offer was subscribed 38.87 per cent on the first day of the bidding process on Monday. The price band for the issue was fixed at Rs 750-755 and the minimum amount one can invest by subscribing to a lot of 19 shares is Rs 14,345.

SBI Cards IPO received 3.91 crore bids compared to the issue size of 10.02 crore shares. Total 2.73 crore bids were received at a cut off price of Rs 755 per share.

The issue received bids for 3,94,54,830 shares compared with the issue size of 10,02,79,411 shares, representing 38.87 per cent of the issue. The company has already raised Rs 2,769 crore from 74 anchor investors, including 12 mutual funds.

According to the company, SBI Card IPO saw record 8.52 lakh applications on the first day. The retail portion was subscribed 62 per cent, while the portion allotted for SBI shareholders saw a subscription of 69 per cent.

The biggest strength of the company is the SBI's parentage, whose brand is highly trusted. The credit card-to-debit card ratio stands at 3.7 per cent for SBI Card compared with 45 per cent for HDFC Bank, 28 per cent for Axis Bank and 18 per cent for ICICI Bank, which suggests scope for SBI Card mining SBI customers.

SBI Card has higher NPAs at 2.5-2.6 per cent against an industry average of 1 per cent. It will keep credit cost for SBI Card at an elevated level of 0.4 per cent, Prabhudas Lilladher said.

SBI Cards and Payment Services aims to raise around Rs 10,350 crore through the IPO, including new shares worth Rs 500 crore and an offer for sale of 13.05 crore shares.

(With IANS inputs)

Also Read: SBI Cards IPO: How to apply for SBI Cards IPO? Check price band, lot size, eligibility criteria

Also Read: SBI Cards IPO: Price band for SBI's Credit card IPO fixed at Rs 750-755 per share

Latest Business News

Read all the Breaking News Live on indiatvnews.com and Get Latest English News & Updates from Business