SBI Card IPO listing date: The State Bank of India (SBI) subsidiary SBI Cards and Payment Services Limited is getting listed on Monday 10th March 2020. The SBI Card informed about the same in a written press statement today. After the announcement of the SBI Card IPO listing date, the stock market experts are busy guessing its opening performance. However, a consensus is eluding them. The major reason for such a divide is due to the Yes Bank liability on SBI, which has been given the bailout task – it has to buy 49 per cent share in the fourth largest Indian private bank.
Speaking on the SBI Card IPO listing, Simi Bhaumik, a SEBI registered technical equity analyst said, “I am not much bullish about the SBI, which is a parent company for SBI Card. In my opinion, SBI Card IPO may open on Monday with a discount of 5-10 per cent.” She said that in the coming trade sessions, the majority of the public sector bank companies are expected to feel the heat of weak global cues and hence SBI Card IPO listing may get hit by such bearish outlook of the public sector bank shares that include SBI stock.
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Expecting huge support form huge SBI customer base itself for the SBI Card IPO, Prakash Pandey, MD & CEO at Plutus Advisors said, “SBI Card IPO has been over-subscribed and that reflects the benefit of Banca customers that SBI Card IPO enjoys. I am expecting a flat listing for the SBI Card IPO, which is much better opening in the current market scenario.”
The SBI Cards & Payment Services planned to raise Rs 10,341 crore through SBI Card IPO as they are going to sell out 13.71 shares. The SBI Card IPO price band is Rs 750 to Rs 755 per share. One lot of the SBI Card IPO will comprise 19 SBI card shares means one will have to invest at least Rs 14,250 for one lot of SBI Card IPO. There were six categories of SBI Card IPO investors namely — retail, SBI shareholders, SBI employees, anchor, qualified institutional buyers (QIB) and non-institutional investors. The State Bank of India had given Rs 75 discount to the SBI employees, which means for SBI employees SBI Card IPO price band was Rs 675 to Rs 680. SBI Card IPO was available for subscription from 2nd to 5th March 2020.
SBI has entrusted the SBI Card IPO management responsibility with Kotak Mahindra Capital, Axis Capital, BofA Securities, HSBC, Nomura and SBI Capital Markets. SBI Card commands 18 per cent market share in India, which is second after HDFC Card.
In SBI Card IPO, the company is offering its 14 per cent shares through Offer For Sale (OFS) route. Out of these 14 per cent shares, SBI will selloff its 4 per cent share in the SBI Card while 10 per cent shares will be sold out by private equity firm Carlyle Group. Currently, SBI holds 74 per cent share in the SBI Card while private equity firm Carlyle Group holds the rest 26 per cent shares in SBI Card.