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SBI Cards and Payment Services – the credit card arm of India’s largest public sector bank, State Bank of India (SBI), made a weak debut in the stock exchanges on Monday, listing at Rs 661 per share on the National Stock Exchange (NSE), down 12.45 per cent from its offer price of Rs 755 apiece.
On the BSE, the SBI Cards scrip was listed at Rs 658 apiece, down 12.85 per cent from the issue price.
The stock eventually settled at Rs 678.00 apiece on NSE, down 10.20 per cent from the issues price, while on BSE, it ended at Rs 683.20, down 9.51 per cent. During the day, the stock had hit a high of Rs 755 on both the bourses, while on the lower side, it hit a low of Rs 656 on the NSE and 658 on the BSE.
Over 6.08 crore shares were traded on the NSE while over 41.67 lakh shares exchanged hands on the BSE during the first day of trade.
The most awaited IPO of this year had witnessed a whopping 26.54 times subscription over the 10,02,79,411 shares offered during the offer period, from March 2-5, 2020. The price range for the SBI Cards IPO was fixed at Rs 750-755 per share.
During the IPO process, SBI which owns 74 per cent stake in the credit-card arm, had divested its 4 per cent holding, while the Carlyle Group which owns the rest of the stake, had sold its 10 per cent share.
However, the muted debut comes as stock markets worldwide are beaten down by the rapidly spreading coronavirus, that has wreaked havoc on businesses across the world, stoking fears of a global recession.
