Shares below SBI Card IPO issue price opened amid Corona fears

The initial public offering (IPO) of State Bank of India Card (SBI Card) is also seen as a shadow of coronavirus. SBI Cards' IPO was subscribed nearly 27 times. A bumper listing of the stock was expected.  But on the Bombay Stock Exchange, the IPO closed with a fall of around 13 per cent.

Also read: SBI Cards IPO - Initial Public Offer Detail

State Bank of India stocks with a price band of Rs 775 was listed on the BSE at a price of Rs 658. At the same time, it was also listed on the National Stock Exchange at a discount of Rs 661. While experts had expected around 50 per cent listing gain.

It is known that till the last day of bidding, the IPO of SBI Card received bids up to 26.5 times. The company had hoped to raise Rs 9,000 to 10,000 crore from this IPO. The bidding process of the IPO closed on March 5 after it opened on March 2nd. SBI Cards & Payment Services had fixed a price band of Rs 750-755 per equity share for the IPO. The face value of one share offer was Rs 10. The IPO lot size was 19 shares. That is, investors could bid for a minimum of 19 shares in IPO.

SBI holds a 76% stake in SBI Cards. The remaining stake is with the Carlyle Group. The book-running lead managers of SBI Cards IPO are Kotak Mahindra Capital, Axis Capital, DSP Merrill Lynch, Nomura Financial Advisory, HSBC Securities and SBI Capital Markets.

According to the Reserve Bank of India (RBI) data, HDFC Bank has the highest number of 133 lakh credit cards issued in the Indian market. SBI Cards is the second-largest card-issuing company after HDFC Bank. It has 18% market share. SBI Cards has 94.6 lakh cards. ICICI Bank ranks third with 79 lakh credit cards. Credit card spending in India has increased at a rate of 35.6 per cent annually in the last three years. At the same time, credit card dues have increased by 25.6 per cent.