Shares of SBI NSE down more than 7% Cards and Payments (SBI Card) hit the market on the exchanges on Monday, March 16. The initial public offering was open for subscription from March 2nd to 5th for four days. The company had fixed a price band of Rs 750-755 per share for the IPO.
During the SBI Card IPO, it received a vast response from the participants with a subscription of over 26 times.
The issue opened with a massive discount price of more than 14% 661 price range. It will hit the HNI investors who borrowed money to invest with anticipations of listing gains. Listing opened in massive discounts due to Coronavirus fear around the globe which hit the market so hard.
Quota reserved for qualified institutional buyers (QIB) got subscribed 57.18 times, while non-institutional investors’ category subscribed 45.23 times.
Retail and employee categories were subscribed by 2.50 times and 4.74 times, respectively.
State Bank of India holds a 76% stake in SBI Cards, while the remaining stake is held by Carlyle Group.