New Delhi: SBI Card’s IPO will be listed on the stock market on Monday amid high volatility in the stock market. The IPO opened for subscription on 2-5 March. The IPO of SBI Cards received a strong response in the stock market. The IPO received 26 times more bids. According to stock market experts, the IPO is less likely to get premium in the condition of the market. It can be listed either flat or at a discount. If this happens, then the big investors (HNIs), who have invested in this IPO by taking loans at a higher interest rate, will suffer a big blow.
SBI Card IPO in the gray market was trading at a discount of 20-25% from 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 lower circuit limit of 10%. Later, when the market recovered, the discount saw an improvement of Rs 5 per share. If this IPO is listed on its price band or even a little upside, then large investors (HNIs) may have to bear a huge loss as they have taken loans at very high interest rates.
Analysts say that when the SBI Card IPO was announced, the stock was trading at a premium of Rs 350 in the gray market. Sensing this opportunity, HNI invested heavily in the IPO. As per the data, the non-institutional category (NII) quota received 45.23 times higher bids, while QIB got 57.18 times the bids. At the same time, retail investors were not very enthusiastic. The retail investor quota received only 2.5 times more bids.
