SBI Card has tepid listing

about 7 months ago
No Image

There was so much optimism surrounding the IPO of SBI Card. The issue, priced at Rs.755/share was subscribed over 22 times. The QIB took the giant share of the IPO, subscribing over 57 times while retail was just over 2 times.

But the listing today of the first every credit card issuer was very tepid, reflecting the overall pessimistic view of the Indian and the global markets in the wake of the coronavirus.

The stock got listed on the BSE at Rs.658 but soon recovered to Rs.755 levels but could not sustain there and is now at Rs.728.

In our IPO Analysis, we had concluded, “Strong brand, extensive distribution reach, backend risk mitigation capabilities, act as strong competitive advantages. SBI Cards being a standalone credit card company, supported by favourable industry prospects can be an excellent investment, both from short term and long term point of view. We are bullish on the company and hence advise a ‘subscribe’ to the IPO.”

Popular Comments