- The listing of SBI Cards, one of the largest IPOs of the year, came at the worst possible time for the stock markets.
- The IPO was closed on March 6 and the final price per share had been set at ₹755 per share.
- On Monday (March 16), as the markets closed SBI cards share price fell by 13%
The listing of SBI Cards, one of the largest IPOs of the year, came at the worst possible time for the stock markets. The market is being hammered away as global panic has spread to India, due to Coronavirus and many other crises like troubles in Yes Bank.
On Monday morning (March 16), as the markets opened SBI cards share price fell by 12.4% at ₹661, while the
Sensex crashed by 2,000 points.
As markets closed on Monday, SBI cards had a share price of ₹668, as opposed to the set price of ₹755.
Within the country too, the number of cases grew exponentially in the last few weeks, crossing 100. The bears have taken over the market as India is shutting down malls and all public places along with suspending all visas. The stocks of airline and hospitality companies are on a freefall, along with entertainment industry stocks.
Blue chips like Reliance and TCS are also losing billions in market value. However, what would impact SBI Cards more is that the parent company,
SBI’s stock has also been falling quick and fast ever since its investment into Yes Bank was announced.
It means investors who have been betting on a premium have started winding up their hopes. As per experts, the earlier expected 40% premium has been reduced to 8 to 10%. It could shrink even further if coronavirus continues to spread as the virus continues to spook investors.
The IPO was closed on March 6 and the final price per share has been set at ₹755 per share. The
SBI Cards IPO was oversubscribed 45.23 times by non-institutional investors and over 2.5 times by retail investors.
See Also:
ICICI Bank follows SBI to rescue Yes Bank— and depositors may get to withdraw money sooner than expected
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