INSUBCONTINENT EXCLUSIVE:
NEW DELHI: SBI Cards and Payments (SBI Card) got off to a tepid debut on Monday, as the scrip got listed at Rs 658 on the BSE, a 12.85 per
cent discount to its issue price of Rs 755.
On NSE, the scrip listed at Rs 661, down 12.45 per cent against its issue price.
Analysts were
expecting the stock to list at around Rs 780-800 a piece against the IPO issue price of Rs 755
The issue, which ran from March 2 to March 5, was subscribed over 26 times.
The quota reserved for qualified institutional buyers (QIB) was
subscribed 57.18 times while non-institutional investors’ category was subscribed 45.23 times.
The market was earlier anticipating a 30-35
per cent listing pop for the mega issue due to the scrip’s high demand in the unlisted market, but the recent correction in the secondary
market had dampened investor sentiment a bit
The listing would be a big blow for the HNI investors, who had borrowed money at 13-15 per cent rate of interest to bet on the issue.
When
the IPO was announced, the grey market premium for the stock stood at Rs 350 piece
Sensing opportunity, HNIs bade heavily in the IPO, hoping for listing pop
Data showed the quota for non-institutional category (NII) was subscribed 45.23 times, next only to QIB’s 57.18 times.
Retail and employee
portions were subscribed 2.50 times and 4.74 times, respectively.
The company had fixed a price band of Rs 750-755 per share for the
IPO.
Dalal Street analysts said a huge amount refunded by the company to those who were not allocated the shares may be diverted to the
stock, providing some support.
Kotak Mahindra Capital Company, Axis Capital, DSP Merrill Lynch, HSBC Securities and Capital Markets (India),
Nomura Financial Advisory and Securities (India) and SBI Capital Markets are the managers to the offer.
