Yes Bank customers can get allotment in SBI Cards’ IPO — but with a condition
Yes Bankaccount holders who have invested in the SBI Cards’ initial public offering (IPO) will be allotted shares but with a condition that they make payment using an alternate bank account.
- They will have to make this payment within two days.
- Of a total of ₹10,300 crore share sale, bids worth approximately ₹1,500 crore came from YES Bank accounts — including retail investor bids of ₹150 crore.
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In case investors fail to make the payment, the sale component of the IPO will be reduced. The bank will thereby divest slightly less than what was decided in the first place. The IPO accounted for ₹500 crore of fresh equity and ₹9,800 crore of secondary shares.
The second largest credit card company will foray into the stock market on March 16 (Monday).
Shares worth ₹10,300 crores concluded on March 6 and the final price per share has been set at ₹755. Of this, bids worth approximately ₹1,500 crore came from YES Bank accounts — including retail investor bids of ₹150 crore. The fourth largest private sector bank has over ₹3.45 lakh crore assets and a deposit base of more than ₹2 lakh crore.
The development comes in the back of the ongoing 30-day moratorium period — where the Reserve Bank of India (RBI) had capped the withdrawal limit for customers to ₹50,000 until April 3, 2020. However, an administrator of the bank later said that it might be lifted by the end of the week.
The stock broker association Anmi (Association of National Exchanges Members of India) also urged the RBI to relax the conditions imposed against the Yes Bank payments and transactions.
“The RBI decision has a cascading effect on trading members and their clients at large since they may not be able to cover their positions from their own funds. Thus, many Yes Bank clients may face serious financial problems,” said the letter written to the central bank by the association members.
How to check SBI Cards IPO allotment status