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SBI Cards IPO Subscribed 39% on First Day of Bidding

Professor of Financial Economics and Part-time Value Investor, Transfin.
Mar 2, 2020 12:52 PM 2 min read

Subscribed 39% on first day of bidding. Why timing may be an issue for the IPO.



Subscribed 39% on first day of bidding.

State Thanks of India

The initial public offering (IPO) of SBI Cards and Payment Services, an SBI subsidiary, was subscribed almost 39% on March 2nd, which was the first day of bidding.


The issue received bids for 3,94,54,830 shares compared with the issue size of 10,02,79,411 shares, representing 38.87% of the issue.


While more details are awaited, as of this afternoon the portion set aside for retail investors has been subscribed 51.46% and that of employees has seen subscription of 80% and shareholders at 53.43%. The reserved portion of qualified institutional investors has subscribed 0.09%, while that of non-institutional investors 8.5%. [Moneycontrol]


Extra Crunch

What are the biggest strengths and risks of SBI Cards and Payment Services? Read this article for an insight into the same. [ET Markets]


Why timing may be an issue for the IPO.

Time is Money

The IPO of the credit card subsidiary of the country’s largest lender was always expected to be a success by analysts. But in recent days, concerns have been voiced over the timing. The SBI Cards IPO is hitting markets on the back of a 9% correction in the Nifty and investors are getting increasingly nervous over the implications of the coronavirus outbreak. There are also concerns over valuation and consequences of competition from alternative digital payment platforms.


What should have been a blockbuster listing, therefore, could well end up being a mellow one, depending on how the markets are positioned at the time of listing. [Livemint]


The SBI Cards IPO will be a major news item of this week...but how well do you know what happened in the past week? Have a go at our TheWeekThatWas Quiz and test your wits.