The stock markets are devastated by the havoc of Corona all over the world. As a result of this, the listing issue of SBI Card IPO on Monday has also been priced at about 13 percent less. This is quite disappointing for investors as it was expected that its listing would be at a 30 to 40 percent premium to the issue price.
- Listing of SBI Cards held on Monday 16 March
- Corona also had an impact on the listing of SBI Cards
- Investment in SBI Cards IPO was open from 2 to 5 March
Investors hoping for huge profits from the stock market have been shocked by investing money in the IPO of SBI Cards. The stock markets are devastated by the havoc of Corona all over the world. As a result, the listing issue of SBI Card’s IPO on Monday has also been priced at around 13 percent less than the issue, while it was expected that its listing would be at a 30 to 40 percent premium to the issue price.
The issue price of SBI Cards was Rs 755 per share, but it was listed on BSE on Monday at Rs 658 per share. It was listed at Rs 661 per share on the National Stock Exchange. Significantly, the investment in SBI Cards’ IPO was open from 2 to 5 March and it was subscribed 26.54 times.
However, during day trading, there is some improvement in its shares. By 10.15 am, the share price of SBI Cards had reached about Rs 755 of its issue price. By 11 pm, its market capital on the BSE was about Rs 69,295 crore.
Due to the impact of Coronavirus, the BSE Sensex opened with a loss of 1000 points on Monday and it fell by more than 2100 points in a short time. In such a situation, it did not prove to be a good day for the listing of SBI Cards.
The price range for the IPO of SBI Cards was kept between Rs 750-755. To invest in this IPO, the customer had to bid for at least one lot, which has 19 shares. SBI Cards had hoped to raise Rs 10,355 crore through this IPO and the IPO was subscribed 26.54 times.
SBI Card IPO in the gray market was trading at a discount of 20-25% off the issue price on Friday. The price band for this IPO has been fixed at a maximum of Rs 755. The IPO was trading at Rs 755 on Friday morning when the Nifty touched a 10% lower circuit. Later, when the market recovered, the discount was seen to improve by Rs 5 per share.
Those HNI’s who have taken loans at a huge interest rate to invest in it may get a major setback. Many wealthy investors raised money from the market at a rate of 13 percent to 15 percent to subscribe to the issue. These investors had invested more than Rs 2 lakh in the issue.