SBI Cards shares have a weak listing, end at 10% discount to issue price1 min read . Updated: 16 Mar 2020, 04:24 PM IST
- The issue price of SBI Cards shares has been fixed at ₹755 per share
- SBI Cards IPO was subscribed over 22 times
SBI Cards made a weak debut on exchanges today with shares ending 10% discount as compared to its issue price of ₹755, amid a selloff in broader markets. SBI Cards shares ended at ₹678, after shares traded in the range of ₹755 to ₹656 during the day. The ₹10,000 crore IPO of SBI Cards and Payment Services Ltd, India's largest IPO in over two years, was subscribed over 22 times and had closed on March 5. The QIB category was subscribed 57.18 times while retail over two times.
The Sensex today fell about over 2,700 points today, tracking weak global markets.
SBI Cards, the credit card arm of the country's top public lender, SBI, drew bids for 225 crore shares, compared to the 10 crore on offer.
The listing of SBI Cards, the first by a credit card issuer and the fifth largest by any company in India, happened at a time when global financial markets are roiled by fears of the economic impact of the coronavirus that originated in China and is spreading fast outside the country.
The epidemic has killed over 6,000 people and disrupted global supply chains, with policymakers and central banks of major economies stepping in with assurance of stimulus measures.
SBI Cards is the second largest credit card issuer in the country, with 9.4 million outstanding cards as of September end.
Many brokerages had given a subscribe recommendation to the SBI Cards IPO, justifying its pricey valuation by saying that the segment has the potential to grow in the next few years given that penetration is still low.
As part of the IPO process, SBI, which owns 74% in the company, divested 4% holding in this offer, while Carlyle Group, which holds the rest, sold 10% stake.
Kotak Mahindra Capital Company, Axis Capital, DSP Merrill Lynch, HSBC Securities and Capital Markets (India), Nomura Financial Advisory and Securities (India), and SBI Capital Markets were the lead managers for the IPO. (With Agency Inputs)