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State Bank of India adds a record 3.6 lakh shareholders in December quarter

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MUMBAI: State Bank of India has added a record 3.6 lakh shareholders in December quarter, thanks to the announcement of SBI Cards initial public offer (IPO) which is likely to hit the primary market in next few weeks.

SBI shareholders are eligible for getting SBI Cards IPO from a special category as the chances of getting allotment in shareholders category is more than the general retail category. According to the latest shareholding pattern of SBI, the total number of public shareholders in India’s largest public sector lender has increased to 18.54 lakhs at the end of December 2019 from 14.95 lakhs as on 30 September 2019.

This is the first time SBI has seen such as a massive increase in number of public shareholders.

For the quarter ended March 2019 and June 2019, about 66,000 and 35,000 investors had exited the SBI counter.

Brokers have been aggressively advising their clients to buy atleast one share of State Bank of India in their and their family member accounts to apply for SBI Cards IPO from the shareholders category. The Rs 9000 crore IPO which is expected to open for subscription in the last week of January is commanding a premium of Rs 225-50 per shares over its tentative offer price of Rs 700 in the grey market. Individual shareholders of SBI as on the date of the Red Herring Prospectus are eligible to apply under SBI shareholders reservation quota.

About 1.31 crore shares worth Rs 900 crore are reserved for SBI shareholders. The recently concluded Ujjivan Small Finance Bank IPO, category reserved for the shareholders of Ujjivan Financial Services got subscribed just 3.99 times compared to retail category subscription of 47 times.

They were also offered 5% or Rs 2 per share discount to issue price of Rs 37. Last month, SBI Cards has filed Draft Red Herring Prospectus (DRHP) with market regulator Sebi.

The company will offer up to 13.05 crore equity shares via offer for sale route.

This will include up to 3.73 crore share sale by SBI and up to 9.32 crore shares on offer by Carlyle Group (CA Rover).

In addition, the company will also issue fresh equity shares of Rs 500 crore. The backing of SBI and Carlyle Group plus the high yielding nature of the business is helping generate significant interest around the IPO, said market participants.




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