SBI Cards IPO, which was closed on March 6, was oversubscribed 45.23 times by non-institutional investors and 2.5 by retail investors. The SBI subsidiary has announced allotment status on the website of its registrar, Link Intime India. The company has fixed the SBI Cards issue price at Rs 755, which is the upper limit of the IPO price band.
To check the allotment status, you need your PAN card and application number. Crisis-hit YES Bank customers, who are not able to make an online payment, can do so via alternate bank account if they are allotted shares. Notably, YES Bank customers had placed bids worth Rs 1,500 crore, while retail investors placed bids worth Rs 150 crore. The company's total share sale amount to Rs 10,300 crore.
The SBI Cards will likely be listed on March 16. 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.
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.
How to check SBI Cards IPO allotment status
- Go to the online portal of Link Intime India (linkintime.co.in).
- Select SBI Cards and Payment Services in the drop-down menu of the investor's centre section of the website.
- Enter Permanent Account Numbers (PAN) or application number or Client ID.
- Enter the captcha code and submit and view allotment status.
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 today which clearly points towards a muted listing in the range of Rs 800 to 850. We expect the stock to get listed in the above range also because of the refunds likely to be credited on the 13th which itself is an awesome amount".
The credit arm of the country's largest public-sector lender SBI plans to raise Rs 10,355 crore through the IPO, by offering a fresh equity issue worth Rs 500 crore and Offer for Sale (OFS) worth Rs 9,840.8 crore for a total dilution of 14% stake by promoters, State Bank of India and Carlyle Group's CA Rover Holdings.
Edited by Manoj Sharma