For those who are active in markets, the word ‘successful IPOs’ directly leads to the two names: IRCTC and D- Mart. These are amongst the most successful IPOs in the recent times. And now there is the hullabaloo about SBI Cards IPO. There was very high demand for these shares (IRCTC and Dmart). But will SBI cards IPO be as bumper a hit as IRCTC IPO?
Rolling out an IPO is a very complex process. Whenever a company wants to generate fresh capital from public, they need to roll out an IPO. There is an upcoming IPO of SBI cards which is expected to again set the market on fire. The IPO is scheduled to open on 2nd March with a price band of 750-755 per share. It includes fresh issue worth INR 500 crores and offer for sale of up to 130, 526, 798 shares. The lot size for the bid has been finalized to 19 equity shares and multiples of 19 thereafter.
1) Existing shareholders of SBI: Out of the total issue, 9.5 per cent or 13,052,680 shares have been reserved for the existing share holders of SBI. This means that the investors who had State Bank of India shares in their DEMAT as on 18th February 2020, which was the record date for the application, can apply for the IPO under this category. There is no minimum requirement on the number of SBI shares you need to have in order to apply for the IPO.
2) Retail Quota: If you are not having SBI shares in your DEMAT you can now apply under this category. Around 35 per cent of the issue is reserved for retail and small investors. This category is open for all up to a total investment of INR 2 lac. However, SBI shareholders can also apply under this category and can also apply above INR 2 lac up to the reserved portion for the shareholders category.
3) Employee Quota: The most beneficial category is for the existing employees of State Bank of India. If any SBI shareholder is an employee with SBI, he is eligible to apply under all the three categories. Employees of SBI will also be offered a discount of INR 75, as per the exchange filing with SEBI. The maximum cap for employees is at INR 5 lac.
Out of the total issue, 50 per cent has been reserved for Qualified Institutional Buyers (QIBs) and 15 per cent for Non-Institutional Bidders (NIBs).
Usually, all IPOs open the window for subscription for three days, but SBI cards IPO will be open for subscription for four days. For the first three days, the issue will be open for all including QIBs, NIBs and retail investors, but on the fourth bonus day, which will be 5th March, the issue will be exclusively opened for retail investors only.
It is expected that the SBI cards IPO will get a good response from all categories, considering that the IPO is coming from the house of State Bank of India. Asper the analysts, it is expected that the retail segment will get the most demand.
Data is updated on 7th per month. It gets verified every quarter by independent auditor.
Data presented here is taken from company's inception
Importance given to satisfactory resolution as per prescribed TAT