SBI Cards IPO (Open For Subscription From 2nd-5th March)
After months of anticipation, the wait is finally over for investors looking to subscribe to SBI Cards. As of 2nd March 12 noon, the IPO has already been subscribed by 21.8% and is expected to receive a strong response from investors till the end date. On 29th Feb the company managed to raise Rs 2769 Crores from Anchor investors.
This includes Government Pension Fund Global, 12 mutual funds, Singapore government, Monetary Authority of Singapore, among others. SBI Card IPO date till which the subscription is open is 5th March. SBI Cards is to get listed on NSE and BSE. The listing of shares is expected to happen on 16th March
SBI Cards and Payments Services Limited is the credit card subsidy of the State Bank Of India. By means of the IPO, the company aims to raise over Rs 10,341 Crore by selling 13.71 Crore shares at cut-off price. If you are looking to subscribe to this IPO, here are the vital details to know:-
Details Of The IPO
| Particulars | Description |
| SBI Card IPO: Open Date | 2nd March, 2020 |
| SBI Card IPO : Closing Date | 5th March 2020 |
| IPO Price | Rs 750 to Rs 755 per equity share |
| Face Value | Rs 10 per share |
Read More : SBI Cards And Services
| Application | Lots | Shares | Amount ( Cut-off) |
| Minimum | 1 | 19 | Rs 14,357 |
| Maximum | 13 | 247 | Rs 186,485 |
Companies | Type | Bidding Dates | |
| Regular | Closes 16 Dec | ||
| SME | Closes 16 Dec | ||
| Regular | Closes 17 Dec | ||
| SME | Closes 17 Dec | ||
| SME | Opens 17 Dec |
Who Can Apply For The IPO
Different categories of investors are eligible to apply for the SBI Cards IPO and their share quotas have been decided. Here are the details:-
| Category Of Shareholder | Share Quota |
| Retail Investors | Shares Reserved : 4,27,81,188
Maximum investment amount per retail buyer is capped at Rs 2 Lakhs |
| SBI Card Holders | Retail investors who own even a single share of State Bank Of India are eligible to apply under this reserved category. SBI Card has reserved 1,30,52,680 shares for SBI shareholders |
| SBI Employees | SBI employees have 18,64,669 discounted shares reserved for the IPO , which means the price band for the employees will be at Rs 675-680 |
| Qualified Institutional Buyers | QIBs include mutual funds, global portfolio managers, insurance companies, registered FIIs, endowment funds, sovereign funds, etc.
2,44,46, 393 shares have been reserved for this category. |
| Non-Institutional Investors | Entities excluding QIBs that can invest more than 2 Lakhs per application, fall under this category. These include HNIs, NBFCs, private limited companies, corporate, etc. 1.83,34,795 shares have been reserved for this category. |
How To Apply For The IPO?
Only individuals who have a Demat account will be eligible to apply for the IPO. The DEMAT account number is a 16 digit number that is made up of your DP ID and Client ID. ( If your depository participant is registered with CDSL).
The first eight digits of your DEMAT number are the same as your DP-ID and the next eight numbers are the same as your Client ID. If your depository participant with whom you have a DEMAT account is registered with NSDL then the number would be of 14 digits starting with IN. For instance, with CDSL your DEMAT number is 01234567890987654 whereas in case of NSDL it would be IN012345678976.
If your depository participant supports subscribing through their IPO platform you can do so. Another way to make SBI IPO subscription is to do so via net banking. Here are the steps mentioned for SBI bank account holders in general, these may slightly differ from bank to bank:-
- Log in to your SBI Netbanking account and go to ‘ e-Services’ on the menu bar. Click on ‘Demat & ASBA Services’.
- Under the ASBA services ( IPO) Click on IPO (Equity). Once you click on this you will be shown a page titled ‘Apply for new IPO’.
- Read this page carefully and click on ‘accept’ if you satisfy the eligibility criteria. The next window will show you all the live IPOs with their opening and closing dates. Select ‘SBI Card’ from the options. Please note the option to select SBI Card IPO will be shown only once the IPO goes live, i.e on 2nd March. Go through the undertaking on the next page carefully and click on ‘Accept’ to proceed
- Select ‘Indian Resident Individual and HUF’ from the drop-down to specify your category
- Enter your name and PAN details correctly
- Select the depository ( CDSL or NSDL)
- Now in the beneficiary DP account number field, enter your DEMAT number.
- After entering your personal details, you would have a number of shares you want to buy. 1 lot size has 19 shares, and that is the minimum number of shares you can place an order for. So in order to bid more, you need to do so in the multiples of the minimum quantity that is 19. So you can bid for 19, 38, 57 shares and so on.
- Now in the screen below you can see different series mentioned. The multiple rows are mentioned for your convenience so that you can place an order for shares with different bid amounts. For instance, you want to buy 19 shares for the price of Rs 755 and another 19 shares for Rs 754 and so on. While you can choose a bid amount between Rs 750-755, it is better to choose the bid amount on the higher side as it increases your allotment probability significantly.
- In the first row, mention the number of shares in ‘Quantity’. The face value of each share is Rs 10 so multiply the total number of shares with 10 and write the amount in the ‘Face value’ cell. Next, you need to decide the bid price and multiply it with the total number of shares, enter the value you obtain under the ‘Total Value’ cell.
- Add the series amount, double-check it and then enter the value in the cell ‘Total of all series value ( in INR). Select the debit account number, and then click on Submit. That’s it, you will get a final screen confirming your application.
On A Final Note
Please note, once your order for the IPO is placed successfully, the order amount will get blocked in your bank account. The amount blocked in the bank account cannot be used for other purposes which means you can’t withdraw. The money is safe in your account. If you are not allotted with the share, the amount for which you have applied for the IPO will be unblocked and can be withdrawn by you.So plan your liquidity needs accordingly.
Also, ensure all the details you have entered are correct else your application will get rejected. If you want to rectify or modify your application, you can do so but only during the subscription period. Revision is not possible after the bidding process closes. You can also cancel the IPO application however cancellation or withdrawal of an IPO is only allowed before the end date of the IPO bidding.
Happy Investing!
Disclaimer: The views expressed in this post are that of the author and not those of Groww