SBI Cards IPO listing: Shares of SBI Cards and Payments -- SBI Card, one of the most-awaited IPO, are scheduled to debut on the bourses on Monday (today) i.e. on March 16. The initial public offering (IPO) was open for subscription between March 2 and March 5. The SBI Card IPO is expected to make a modest debut on the stock.
SBI Card IPO issue had received bids 26.54 times the original 100,279,411 offered shares on its last day of the bidding process.“There may be a slight premium on listing...but HNIs will make a loss as their interest cost comes up to Rs 120-125 per share above the issue price. NBFCs also borrowed nearly Rs 80,000 crore through commercial papers at double-digit rates and they could not lend all of that as HNI subscriptions fell below estimates,” said Geetanjali Kedia, senior analyst told ET.
Quota reserved for qualified institutional buyers (QIB) got subscribed 57.18 times, while non-institutional investors’ category subscribed 45.23 times. Retail and employee categories were subscribed by 2.50 times and 4.74 times, respectively.
State Bank of India holds 76 per cent stake in SBI Cards, while the rest is held by Carlyle Group.
The credit card-to-debit card ration for SBI card stands at 3.7 per cent compared with 45 per cent for HDFC Bank, 28 per cent for Axis Bank and 18 per cent for ICICI Bank. Shares of SBI cards and Payments will be listed on March 16, 2020. The second-largest credit card player in India will be the first enterprise from the credit card business to be listed in the domestic secondary market.