Coronavirus grips SBI Card, stock debuts with 13% discount at Rs 658
SBI Cards and Payment Sevices shares listed at a 12.85 percent discount amid coronavirus turmoil.
It opened at Rs 658 per share on BSE, Rs 97 less than the final issue price of Rs 755.
Meanwhile, on the NSE, scrip opened at Rs 661, down 12.45 percent from the IPO price.
It touched an intraday low of Rs 656 and a high of Rs 714.95 on the NSE, while on the BSE, its day’s low was Rs 658 and high of Rs 715.
At 10:06 hours, the stock traded with volumes of 11.64 lakh shares on the BSE and more than 2 crore shares on the National Stock Exchange.
The listing at discount was largely expected by analysts who expected the stock to have a lukewarm opening in case the market witnesses another fall on Monday.
The BSE Sensex crashed more than 2,000 points for the third time in the last five consecutive trading sessions. It was down 2,016.62 points or 5.91 percent at 32,086.86, while the Nifty50 fell 567.95 points or 5.71 percent to 9,387.25 at the time of publishing this copy.
Investors looked more worried because of likely weak global growth as global trade took a massive toll after COVID-19 cases worsened in Europe and US.
More than 1.53 lakh people worldwide already infected by the virus with more than 5,700 deaths. Italy is the most affected country by the virus after China.
Investors are not worried about the company’s fundamentals but due to virus-led global turmoil. Hence, FIIs started pulling out money from emerging markets invested through exchange-traded funds since February.
They net sold more than Rs 41,000 crore worth ($ 5.6 billion) worth of shares from February 24 this year.
Exchanges set the 20 percent upper/lower circuit limit for the stock as it traded in the Equity (EQ) segment where intraday transactions are allowed and normal trading is done in this segment.
Hence, the upper circuit limit for the stock is fixed at Rs 789.6 per share and the lower circuit limit at Rs 526.4 per share by the BSE.
The country’s largest credit card issuer SBI Card raised Rs 10,340 crore through its public issue during March 2-5.
The public issue had consisted a fresh issue of Rs 500 crore and offer for sale of more than 13 crore equity shares by State Bank of India and global investor CA Rover Holdings, an affiliate global investment firm Carlyle Group.
State Bank of India had reduced its shareholding in SBI Card to around 70 percent and CA Rover to around 16 percent after the public issue which was subscribed 26.54 times.
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