SBI Cards IPO has attracted huge interest from retail investors on the first day of subscription. The Rs 10,355-crore share sale attracted bids for 62% of the portion allotted to them. Employees of SBI Cards and State Bank of India shareholders bid for 80% and 69% respectively of the shares reserved for them.
The portion for non-institutional investors was subscribed only 12%. Qualified institutional buyers are yet to take part in the share sale. The firm has allotted 4.27 crore shares for the retail category of IPO from which it expects to raise raise up to Rs 3,229.98 crore from individual investors.
SBI Cards share sale was subscribed 39% on first day of the issue. The 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 Rs 2,769 crore from 74 anchor investors.
Singapore government, Monetary Authority of Singapore, HDFC Mutual Fund, Government Pension Fund Global and Birla Mutual Fund, are among the key investors in the anchor issue. In the anchor issue, shares were allotted at the upper price band of Rs 755 per share.
Among 74 anchor investors, there were 12 mutual funds who were allocated 3,66,69,589 shares of SBI Cards. Anchor investors are institutional investors who are offered shares in an initial public offering (IPO) ahead of its opening.
SBI, the parent firm of SBI Cards, plans to raise Rs 500 crore by selling 0.66 crore shares. Carlyle Group will offer up to 13.05 crore shares to raise Rs 9,855 crore. Shares in the IPO are available in a price band of Rs 750 to Rs 755 per share. The share sale will close on March 5. Equity shares are being offered in SBI Cards IPO in a lot of 19 and in multiples of 19 equity shares thereafter.
By Aseem Thapliyal
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