It was a disappointing IPO debut for SBI cards, thanks to the tanking market. The IPO, which was valued at Rs 755, were trading at 7% lower at Rs 700, Live Mint reported. However, later in the day, an Economic Times report said that the value had dropped 13 per cent at Rs 658 per share.
SBI Cards proposed to raise Rs 10,289 crore at the lower end of the price band (Rs 750 per share) and Rs 10,355 crore at the upper end (Rs 755 per share), bankers announced at the end of February.
Unfortunately for SBI, the listing of the SBI Cards came at a time when the world witnessed a siginifcant crash in the stock markets, thanks to the economic impact of the coronavirus that originated in China and is spreading fast outside the country.
Earlier, market experts felt that the IPO was overvalued at issue price.
Experts feel that the performance of the SBI Card IPO should have reflected in the share price of SBI too, which is the majority shareholder in the credit card company.
The IPO size was apparently Rs 9,000 crore, with a fresh issuance of Rs 500 crore, thereby rendering Rs 500 crore for the SBI Card company. The rest Rs 8,500 crore, around 95% of the total amount, will be taken by SBI and Carlyle Group, the promoters, which has also raised questions on the actual beneficiaries of the IPO.
