The issue price is fixed between Rs 750-755 and if you plan to subscribe, you have to shell out at least Rs 14,250 as the lot size has been fixed at 19 shares.
SBI Cards and Payments Services initial public offering opens today for investors and the markets are expecting a positive response to India’s second-largest credit card issuer. SBI Cards is set to enter the market with a Rs 10,350 crore initial public offering from today, the bidding process will close on March 5. The issue price is fixed between Rs 750-755 and if you plan to subscribe, you have to shell out at least Rs 14,250 as the lot size has been fixed at 19 shares. Here’s all that you need to know before subscribing and are you eligible?
- Shareholders of State Bank of India: Even if you have a single share of public lender State Bank of India you can subscribe to SBI Cards IPO under this category. 1,30,52,680 shares of the total offering have been kept aside for this category of investors. However, you need to have purchased the SBI share before February 18, 2020.
- Retail investors: Any individual can apply for SBI Cards under this category. 4,27,81,188 shares have been kept for this category. If you plan to invest you need to apply for a fixed lot which has been fixed at 19 shares. The upper limit for investment has been kept at Rs 2 lakh per investor. The IPO which will be open for four days will entertain only retail investors on the last day.
- SBI employees: Employees of the State Bank of India can apply to subscribe to the IPO and they will be offered a discount if they do so. 18,64,669 shares have been kept for the employees of the bank and they can subscribe for a discounted price of Rs 675-680. If the issue is undersubscribed under this category, SBI employees portion will be allocated, on a proportionate basis, to Eligible Employees for a value exceeding Rs 2,00,000 up to Rs 5,00,000 each.
- Qualified Institutional Buyers (QIB): This category includes, Banks, Mutual Funds, FPIs, insurance companies, and other public financial institutions as specified under the Companies Act 2013. 2,44,46,393 shares have been kept for this category of investors.
Analysts are upbeat on SBI Cards IPO. LKP Securities sees an upside of 62 per cent from the IPO price. SBI Cards would offer up to 130,526,798 equity shares through an offer-for-sale route. This would include up to 37,293,371 shares by SBI and 93,233,427 shares on offer by Carlyle Group. The company is planning to issue new shares worth Rs 500 crore. Currently, SBI holds 74 per cent and CA rover Holdings holds 26 per cent stake in SBI Cards.