SBI Cards Shares Close 9.75% Lower Over IPO Price On Stock Market Debut
The unit of India’s largest lender began trading at a discount of 12.5 percent at Rs 661 a share on the NSE.
SBI Cards and Payments Services Ltd., a unit of India’s largest lender, made its stock market debut at a discount to its issue price.
The scrip opened 12.5 percent lower on the National Stock Exchange Ltd. at Rs 661 apiece compared to its issue price of Rs 755 and eventually closed down 9.75 percent at Rs 681.40 apiece.
The credit card company’s Rs 10,350-crore initial public offering, the largest float in more than two years, was subscribed over 26 times after a four-day share sale.
Quota reserved for qualified institutional buyers got subscribed 57.18 times, while non-institutional investors’ category subscribed 45.23 times. Retail and employee categories were subscribed by 2.50 times and 4.74 times, respectively.
State Bank of India holds a 76 percent stake in SBI Cards, while the rest is held by Carlyle Group.
“We are not disappointed with the listing performance,” said Hardayal Prasad, managing director, and chief executive officer at SBI Cards. “Contrary to the way markets have performed in the past few days, we have strongly responded.”
The card company listed at a time investors fretted about the potential economic impact of the coronavirus outbreak that has killed more than 6,400 people worldwide, pummeling global stock markets.
Infections have been spreading in India too, jumping to over 110 confirmed cases. Both the Sensex Index and the Nifty 50 Index have tumbled about 15 percent in the last two weeks as investors veered away from risky assets.
Prasad also expects restrictions on travel, mall visits, entertainment to affect the card issuer’s business. “We could see a minor blip in terms of overall spends.”
Watch the interview with SBI Cards CEO on coronavirus impact, future prospects and more: