SBI Cards and Payments Services is all set to enter Dalal Street with its initial public offer (IPO), which is set to open on 2 March 2020.
SBI Cards and Payments Services is all set to enter Dalal Street with its initial public offer (IPO), which is set to open on 2 March 2020. The price range for the SBI Cards IPO has been fixed at Rs 750-755 per share, which will see it become the fourth largest PSU IPO ever in India. PSU shares have brought in mixed returns for investors, with investors burning their hands in some, while earning big gains in others. Here’s how three earlier PSU IPOs, bigger than SBI Cards, have fared in the market over the years.
Investors who were first to jump to the IPO of Coal India have seen the stock burn a deep hole in their pockets. Coal India share price is nearly half of what it was on the day of its listing on the stock exchanges in 2010. Coal India’s IPO price was fixed at Rs 225-245 and it opened at Rs 287 per share and closed at Rs 342 on the day of listing. The scrip is currently trading at a price of Rs 175 a piece. Coal India’s IPO was the biggest IPO in India that saw the company fetch over Rs 15,000 crore.
Shares of General Insurance Corporation were listed on the stock exchanges at a price of Rs 850 per share in 2017, below its issue price of Rs 912. GIC, which was the sole reinsurance company in the Indian market till 2016, faced competition when foreign insurance companies entered the market. With the IPO, General Insurance Corporation was able to earn Rs 11,370 crore. Now trading at a price of just Rs 199, investors who invested in the company’s IPO have suffered significant loss of 80 per cent from the issue price.
ONGC, the state-owned crude oil and gas exploration and production firm, was one of the biggest IPOs in India. ONGC, on listing in 1996, helped the company bag more than Rs 10,000. From its listing price of Rs 234, ONGC share price went as high as Rs 310. Currently trading at Rs 98 per share, ONGC shares are down 58% over the issue price.