SBI Card IPO: The State Bank of India’s subsidiary SBI Cards & Payment Services (SBI Card) initial public offer (IPO) is available for SBI Card IPO subscribers from today. The SBI Card IPO subscription will remain available for investors till 5th March 2020. The SBI Cards & Payment Services plans 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. However, for information to the SBI Card IPO investors, there are six categories of investors namely — retail, SBI shareholders, SBI employees, anchor, qualified institutional buyers (QIB) and non-institutional investors.
The SBI Card has reserved its shares for various category investors. If an investor falls in more than one category, he or she can apply in all those categories for the SBI Card IPO.
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Here below the various categories of the SBI Card IPO investors and the number of shares up for grab to there:
1] Retail: Individual stock market investors can buy SBI Card IPO in this category. The total number of shares reserved for retail investors is 4,27,81,188. As the SBI Card IPO price band is Rs 750 to Rs 755, the State Bank of India plans to raise Rs 3,229.98 crore from retail investors. As per the SEBI Regulations, a retail investor can apply for the maximum of 14 lots as one can’t go beyond Rs 2 lakh upper cap investment in the SBI Card IPO.
2] SBI shareholders: A retail investor having SBI shares in one’s Demat account can apply under the SBI shareholder category as well. As per the norms, a retail investor is eligible to apply under the SBI shareholder category if he or she has even one share of SBI. The total number of SBI Card shares reserved for the SBI shareholders is 1,30,52,680 means SBI Card plans to raise up to Rs 985.48 crore under the SBI shareholder category. An investor applying in this category won’t be eligible for any discount.
3] SBI Employees: The State Bank of India has reserved 18,64,669 shares of the SBI Card for the SBI employees. SBI is offering Rs 75 discount to its employees who wishes to apply for the SBI Card IPO. Hence, the price band for SBI employees will be Rs 675-680 per share, which means the SBI is planning to raise up to Rs 126.79 crore under this category of SBI Card IPO investors.
4] Qualified Institutional Buyers: This category of SBI Card IPO investors include mutual funds, insurance companies, registered FIIs, global portfolio managers, sub-accountholders of the FIIs, sovereign funds, endowment funds, etc. The State Bank of India has reserved 2,44,46,393 shares for this category investors means they want to raise up to Rs 1,845.70 crore in this category.
5] Non-institutional Investors: This segment includes all types of investors other than retail and QIB. Hence, this category is a High Net Worth Investors (HNIs) as it comprises corporates, NBFCs, etc. The State Bank of India has set aside 1,83,34,795 shares in this category. If fully subscribed, SBI will raise up to Rs 1,384.28 crore from this category of SBI Card IPO investors.
6] Anchor Investors: QIB can apply under this category for the SBI Card IPO. To become eligible under this category, QIB will have to make an application of at least Rs 10 crore in the public issue. The total number of SBI Card shares reserved for Anchor Investors is 3,66,69,590.