- Today SBI’s IPO took place in the Indian stock market which was open for subscription between 2-5th
- SBI’s IPO was subscribed 22 times.
SBI Cards IPO is said to come with a modest entry in the NSE, BSE Stock market. After the World Health Organization (WHO) declared COVID-19 as a pandemic after the virus spread across 124 countries.
Over 1.3 lakh people globally have been injected with 5K and counting fatalities. If you think that COVID-19 is affecting life on the street, you’re probably wrong! Coronavirus outbreak has affected by the life of stocks in the stock market.
With a number of equities falling for 3-weeks on the trot, market participants do not see a blockbuster listing on March 16. It’s grey market premium too fell quite sharply to around ₹50 from ₹350-280 levels seen before the issues opened on March 2.
The counter is trading at a discount to its grey market premium as buyers stayed away given the global disturbances still lingering in the stock market. The grey market showed the counter listing at a premium of ₹350-380 per share as against its issue price of ₹755.
₹10,340-crore public issue was subscribed 26.54 times during 2-5th March – a situation which was much lower than analysts’ expectations.
Given the current market scenario and shrinking grey market premium, Manali Bhatia, Senior Research Analyst at Rudra Shares and Stock Brokers, she expects silent listing of SBI Cards shares. However, she and many others are optimistic that as soon as the fears of coronavirus are gone, shares are definitely to go up in the market.
State Bank of India holds a 76% stake in its SBI Cards vertical, while the rest is held by Carlyle Group. The credit card-to-debit card ration for the SBI card stands at 3.7% compared with 45% for HDFC Bank, 28% for Axis Bank and 18% for the ICICI Bank.
I’m sure you have noticed a number of canopies of SBI Cards outside busy metro stations in the NCR. This was a move to generate hype among the crowd first of all as well as to tell than that their Indian bank is also providing credit cards, just like any other sophisticated private bank.
SBI Cards IPO was one hot topic of last month. But I guess it was the fate of the government bank of not being able to fly as high as they initially thought.
With lingering fears of coronavirus outbreak at the stock market, people are reluctant to buy stocks as well as those stocks that were said to perform outrageously well, are ending up with a modest and nominal opening day.
Let’s just hope COVID-19 disappears by the earliest. Only after this virus, we are expecting to see a rise in various stock, SBI Cards is one of them.