Investors who applied in the IPO of the SBI Cards and Payment Services are keenly awaiting the allotment of shares today. SBI Card IPO issue had received bids 26.54 times the original 100,279,411 offered shares on its last day of bidding process.
As per IPO's tentative dates, the electronic credit of allotted shares to successful applicants in their Demat accounts will be done by March 13, 2020. The initiation of refund for investors who are not allotted shares will be done on March 12, 2020. Investors can check the subscription status of the offer on the online portal of Link Intime India. The entity, which is the registrar for SBI Cards IPO, will carry out the allotment process as per the prospectus.
One of the biggest awaited IPO of 2020, which was open for four days between March 2 and 5, was subscribed 26.54 times. 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.
Although, the drastic consecutive drop in the equity markets has tampered expectations of strong listing gains for the stock in the grey market. The premium in the unofficial market has reportedly declined post last week's fall amid coronavirus scare.
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 an 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.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today