SBI Cards IPO subscribed 88% on second day of bidding; retail investors portion oversubscribed 21%

SBI Cards and Payment Services initial public offering (IPO) was subscribed 88 per cent on the second day of bidding as retail investors subscribed more than 100 per cent of the shares offered along with SBI employees and shareholders. Of the total 10 crore shares that are being offered in the IPO, investors have bid for 8.75 crore shares translating to Rs 6,609 crore out of the total Rs 7,571 crore that SBI cards is trying to raise from the issue. On the first day of bidding SBI Cards IPO was subscribed 39 per cent.

Retail investors bid for 5.18 crore shares which was over 100 per cent of the shares reserved for the category. SBI shareholders too were actively bidding for the IPO, bids were received for 1.83 crore shares against the 1.30 crore shares reserved under the category. SBI employees, who were given a discount of Rs 75 per share, did not shy away from the offer and bid for more than 34 lakh shares, accounting for over 180 per cent of the shares that were reserved for employees. 

Qualified Institutional Buyers (QIB) category received bids for 22 per cent of the shares reserved under the category, tomorrow will be the last day for QIBs to bid for the SBI Cards IPO. Non-Institutional Investors bid for 86 lakh shares that translates to almost half the shares that are reserved for the category. 

Watch: All you need to know about SBI Cards IPO; should you subscribe or not?

The SBI Cards IPO will remain open till March 5 for retail investors while other categories can only bid till March 4. The issue price for SBI Cards IPO has been fixed at Rs 750-755, and a bid can be made for a minimum of 19 equity shares and in multiples of 19 shares thereafter. On Monday, which was the first day of bidding retail investors and SBI shareholders were bullish on the IPO, bidding for more than half of the shares reserved for them.

SBI Cards will be the first players from the cards industry in India to become a listed firm after the IPO. Promoter State Bank of India and PE firm Carlyle group will reduce their holdings through the IPO along with a fresh issue of Rs 500 crore. SBI Cards raised Rs 2,769 crores from 74 anchor investors before the IPO opened. Singapore government, Monetary Authority of Singapore, HDFC Mutual Fund, Government Pension Fund Global and Birla Mutual Fund, are among the anchor investors.